Govt. Fixes 18.50 LMT Monthly Sugar Quota For Sale In January 2019 With Benefits Of Additional Quantity To Mills Which Obliged MIEQ Order

In a notification issued on 28th day of December 2018, the food ministry has allocated sugar quota for sale to each of 537 mills in the country.
The Govt. has also announced that the Maximum quantity of white/refined sugar for domestic sale and dispatch during the month of January 2019 as given in the column 4 of the table above has been made taking into account the Stocks as on 30th Nov. 2018 as well as the estimated production of sugar in the month of December, 2018 as submitted by sugar mills through email as well as through their letters. However, the said maximum sales quantity will subject to actual production achieved by the said sugar mills in the month of December 2018 and adjustment in subsequent orders accordingly.

Also, the millers which have not filed P-II return for the month of November, 2018, the maximum quantity of white/refined sugar for domestic sale and dispatch during month of January, 2018 is treated zero and it will be continued to be treated as zero in the following months till they file P-II return.

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.
Besides, during the month of January, 2019 sugar mills having distilleries with ethanol production capacity which divert B – heavy molasses to produce ethanol and thereby sacrifice sugar, shall be eligible to sell additional quantity of sugar in addition to the quantity of white/refined sugar prescribed for domestic sale/dispatch as indicated in column 4 of the table. The additional quantity of sugar in lieu of production of ethanol from B-Heavy Molasses produced during the month of December, 2018, shall be calculated as per the provisions contained in this regard in Sugarcane (Control) Order, 1966. The quantity of such diversion of sugar should be indicated in the P-II return for the month of January 2019.

As indicated in the stock holding limit order No. 5-1/2018 Sugar Control dated 31st October 2018, the sugar mills are required to export quantity of Minimum Indicative Export Quota (MIEQ) allocated to them for export during Sugar Season 2018-19. For this purpose sugar mills are required to set their quarterly targets and intimate the same to DFPD. Further, if any sugar mill fails to intimate their quarterly exports target before the end of any quarter, the quarterly export quota will be deemed to be one fourth of the total MIEQ of 2018-19 sugar season. The fulfillment of the quarterly export quota target, as the case may be, shall be monitored by DFPD based on actual export reported by the sugar mill through P-II return. In case, a sugar mill fails to achieve its quarterly sugar export target or deemed export target, the equivalent quantity of un-exported sugar during the said quarter shall be deducted in three installments from the quantity of sugar to be allocated to them in Column 4 of table of monthly stock holding limit order for each month in the subsequent quarter.

The sugar-mill wise Maximum quantity of white/refined sugar for domestic sale and dispatch during the month of January’ 2019 as given in column 4 of the table, has been worked out on the basis of following parameters:

1. The total quantity of maximum white/refined sugar for domestic sale and dispatch have been prorated giving equal weightage, i.e. 50% each to sugar production of 2017-18 sugar season and the notional month end stock of December, 2018. The notional stock of December has been arrived by quantity of stock reported by the sugar mills at the end of November, 2018 minus maximum white/refined sugar for domestic sale and dispatch in the month of December, 2018 as reported by sugar mills.
2. The excess quantities which have been sold by the sugar mills who have prima facie violated the stock holding limit order for the month of August 2018, have been deducted from the quantity of maximum white/refined sugar for domestic sale and dispatch as indicated in the column 4 of the table of this order.
3. Sugar mills which have partly/fully fulfilled their MIEQ obligation for the first quarter of the current sugar season 2018-19 have been given additional quantity and added in the quantity of maximum white/refined sugar for domestic sale and dispatch as indicated in the column 4 of the table of this order. Similarly, deduction from the quantity of maximum white/refined sugar for domestic sale and dispatch as indicated have been made in respect of mills which have fully/partly failed to fulfill their MIEQ obligation for the first quarter.

In the previous month the Govt. allocated quota to 534 mills in the country to sell 19.48 lakh MT plus sugar mills having distilleries with ethanol production capacity which divert B-heavy molasses to produce ethanol and thereby sacrifice sugar, were eligible to sell additional quantity of sugar in addition to the quantity of white/refined sugar prescribed for domestic sale/dispatch.

With lower quota compared to last month, supply in the market will reduce due to which sentiments are likely to get positive and prices to get firm.

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