Government releases additional 2 LMT sugar quota for August 2023

To meet the festival demand, the government has released an additional 2 LMT sugar quota for August 2023.

Earlier, in a notification issued on 28th day of July 2023, the food ministry had allocated 23.50 LMT monthly sugar quota for August 2023 which was 1.50 LMT higher than the quantity allocated in August 2022. Now with an additional quota, the total quota for August 2023 is 25.50 LMT, which is 3.50 LMT higher than the quantity allocated in August 2022.

The government had allocated 24 LMT monthly sugar quota for July 2023. And it also extended unsold quota of July 2023 by 15 days.

According to market experts, the government has released an additional sugar quota to ensure stable prices during the festive season. This strategic move is likely to keep sugar prices under control, with an expected reduction ranging from ₹30 to 50 per qntl. Furthermore, sugar prices have crossed ₹3610 per quintal for S Grade and ₹3675 to 3700 for M Grade in Maharashtra, prompting the government to release additional sugar into the market.

This seems to be welcome move by the govt to release additional sugar ahead of the festive season. Given the current focus on the escalating prices of essential kitchen commodities such as tomatoes and onions, the government is faced with the delicate task of managing supply and demand. This approach aims to prevent sudden price spikes and ensure the seamless execution of national initiatives like the ethanol blending programme.

According to the notification, the group sugar-producing companies having more than one sugar-producing units 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 August, 2023 as given in column (7) of the table, has been worked out on the basis of following parameters:-(i)The August, 2023 Stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of July, 2023. (ii) The notional month-end stock for the month of July, 2023 has been worked out on the basis of month end stock for June, 2023 (as reported in P-II), further adding the sugar lifted from sugar mills since 1st November, 2022 for export as per 4.3 Column of P-II as well as NSWS Portal and subtracting actual release for June 2023.
(iii) Besides, incentive in lieu of sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar is being given corresponding to the reported ethanol production for June, 2023.

As per the notification, all sugar mills have to register and fill online P-II on National Single Window System (NSWS) portal ( If the sugar mill does not fill online information on NSWS portal, monthly release quota will not be allocated for the month of September, 2023 to such sugar mills. All the sugar mills/distilleries are informed that information relating to ethanol production from B-Heavy, Sugar Syrup, Sugarcane Juice shall also be filled on NSWS portal itself.

Since no sugar mill has communicated surrender of quota for August, 2023, it may be ensured by all mills that the quota mentioned must be sold by 31st, August 2023. Further, there will not be any extension of this month’s quota including additional allotment and this has to be sold in the current month itself i.e. August 2023. No extension will be given for this quota. Any violation of this order would attract the penal provisions under the Essential Commodities Act, 1955, as amended from time to time.

Click here to read the notification



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