New Delhi, 29th June 2020: In a notification issued on the 29th day of June 2020, the food ministry has allocated 21 LMT monthly sugar quota for July to each of 546 mills in India. No extension has been announced for the allocated quota of June 2020.
The allocated quota for July 2020 is 50,000 MT higher than the quota allocated for sale in July 2019 which stood at 20.5 LMT. In the previous month the Govt. allocated 18.5 LMT quota for June 2020 to each of 546 mills in India.
In the month of June 2020, millers had witnessed fresh buying due to the rumours of hike in Minimum Selling Price (MSP) of sugar which has been talked of from Rs.31/kg to Rs.33/kg. Some demand had also been witnessed due to the unlocking of nationwide lockdown due to the coronavirus pandemic. According to market experts, demand for sugar is yet likely to pick up pace since the country has reached the scenario of complete unlocking. Once hotels, restaurants, theatres, malls etc. open, the industry shall witness the actual demand coming in.
The group sugar producing companies having more than one sugar producing unit may maintain the stock as defined in Para (1) of this Order, either unit wise or for the group as a whole. The sugar-mill wise Maximum quantity of white/refined sugar for domestic sale and dispatch during the month of June 2020 been worked out on the basis of the following parameters:
The June 2020 stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of June 2020.
The notional month-end stock for the month of June 2020, has been worked out on the basis of month end stock for May, 2020 (as reported on P-II) further adding the sugar lifted from sugar mills for export as per 4.3 column P-II and subtracting actual release for June 2020.
The difference in the actual and the estimated sugar sacrificed for producing ethanol with B heavy molasses/sugarcane juice/sugar syrup/sugar of May 2020 has been adjusted.
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