Govt. Fixes 20.5 LMT Monthly Sugar Quota for Sale in November 2019

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ChiniMandi Delhi, 30th October 2019: In a notification issued on 31st day of October 2019, the food ministry has allocated 20.5 LMT monthly sugar quota for November to each of 535 mills in India along with added incentivized quota to those mills who have completed their export targets under MIEQ Quota. The allocated quota of November 2019 is 1.5 LMT lower than the preceding year’s November month quota that stood at 22 LMT.

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 November 2019 as given in column 4 of the table has been worked out on the basis of the following parameters:
The November, 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 October 2019. The notional month-end stock for the month of October 2019, has been worked out on the basis of month end stock for September, 2019 (as reported on P-II) and subtracting actual release for October 2019. Since new sugar season 2019-20 has commenced from October 2019 no data on sugar production during October 2019 is available 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 October 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 November 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 November, 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 August 2019 for stock holding limit Order for the month of November 2019.

Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of June 2019. Except 2 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 2 sugar mills have been deducted from the proposed allocation in the month of November 2019.

In the previous month the Govt. allocated 21 lakh MT monthly sugar quota in October to 535 mills in the country. The millers have been witnessing scanty demand in spite of the ongoing Diwali festival which is one of the biggest festivals of Hindus. Rains have also been adding to the woes. With delayed monsoon the festive demand is still slow and effecting sugar consumption directly. With the schedule of majority of mills to begin crushing of sugarcane and the current situation looks like the Indian Sugar Industry will face a tough time to reduce the stock piles after witnessing a “not so sweet Diwali” this year!

Click here to view the Notification – Monthly Release Order November 2019

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