Govt. fixes 18LMT monthly sugar quota for sale in April 2019 with extension of unsold sugar stocks of March 2019 quota

ChiniMandi Delhi, 26th March 2019: In a notification issued on 25th day of March 2019, the food ministry has allocated sugar quota for sale to each of 532 mills in the country.

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 mills are allowed to carry forward their unsold sugar stocks for the month of March 2019 to April 2019 for sale in addition to the quantity allocated under stock holding order for the month of April 2019.

The April, 2019 stock holding limit has been prorated on the basis of giving equal weightage, i.e. 50% of each to total sugar production of sugar during the sugar season 2017-18 and the month end notional stock for the month of March 2019.

The notional month-end stock for the month of March, 2019 has been worked out on the basis of month end stock for February, 2019 (as reported on P-II) adding expected production for March, 2019 subtracting actual release for March, 2019. For expected March, 2019 production for corresponding period of March, 2018 has been taken into account. In case sugar mill, has not been operational during March, 2018, production for the month of February 2019 has been factored in. Besides, the production of raw sugar by the sugar mills has also been added in the March, 2019 month end notional stock.

The production of raw sugar by the sugar mills has also been added in the February 2019 month-end notional stock. The total exported quantity up to January 2019 during current sugar season 2018-19 has also been added in the February 2019 month-end notional stock.

Those sugar mills which completed their 75% to 100% export targets under MIEQ quota allotted to them for the sugar season 2018-19, shall be eligible for incentive in the form of additional allocation @ 10% of their normal allocation for the month of April, 2019. No deductions have been made for non-fulfillment of export targets under MIEQ.

Incentive in lieu of sugar sacrificed for producing ethanol from B-heavy molasses have been given corresponding to the report ethanol production from B-heavy molasses (reported on P-II) during the month of February, 2019 for April, 2019 stock holding limit Order.

The variation on account of difference in the actual production of February, 2019 and the production of February 2018 has been adjusted while working out the March 2019 month end notional stock for April, 2019 stock holding limit order.

Show cause was issued to the sugar mills for violation of stock holding order for the month of September 2018. Except 6 sugar mills, replies to SCNs have been received which are under examination. The excess quantity sold by the said 6 sugar mills have been deducted from the proposed allocation in the month of April 2019.

In the previous month the Govt. allocated monthly sugar sale quota to 546 mills in the country to sell 24.5 lakh MT. With a very high quota announced for the month of March 2019, the Government has allowed sugar mills to carry forward their unsold sugar stocks for the month of March 2019 to April 2019. This has come in the industry as a ray of hope for sugar millers to channelize their sugar stocks and reduce the piling cane arrears.

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