ChiniMandi Delhi, 31st July 2019: In a notification issued on 31st day of July 2019, the food ministry has allocated 19 LMT monthly sugar quota for August to each of 535 mills in India along with added incentivised quota to those mills who have completed their export targets under MIEQ Quota. Column 4 of the table includes both, the allocated quota and the incentivised quota.
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 August 2019 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 2019.
The notional month-end stock for the month of July 2019, has been worked out on the basis of month end stock for June, 2019 (as reported on P-II) and subtracting actual release for July 2019. Since most of the mills have stopped operations during July 2019 hence no estimated production has been taken into account.
The quantity of white and raw sugar dispatched from sugar mills for the purpose of export (as reported P-II) has also been added in July 2019 month end notional stock.
Those sugar mills which have completed their 75% to 100% export targets under MIEQ quota allotted to them for the sugar season 2018-19 have been given incentive in the form of additional allocation @ 10% of their normal allocation for the month of August 2019. Besides, the sugar mills which have completed 50 to 75% of their export targets under MIEQ quota for the season 2018-19 have been given @ 7.5% of their normal allocation for the month of August, 2019 by adding this incentivized quantity in column 4 of the table in this Order. 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 by adding additional quantity in column 4 of the table of this order, corresponding to the reported ethanol production from B heavy molasses (reported on P-II) for May 2019 for stock holding limit Order for the month of August 2019.
Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of March 2019. Except 6 sugar mills, replies to SCNs have been received from other sugar mills 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 August 2019.
In the previous month the Govt. allocated 20.5 lakh MT monthly sugar sale quota to 534 mills in the country. August month’s quota is likely to bring sweetness in the market as the dawn of the festive season is nearing. Sugar millers will also be able to maintain the demand supply balance, stabilize the prices of sugar and to improve their liquidity position by the recently taken step of the Government of creation of sugar buffer stock of 40 LMT. Positive sentiments for sugar prices supported by festival and export demand are likely to keep the market flow smooth.
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