ChiniMandi, New Delhi: In a notification issued on 30th day of December 2021, the food ministry has allocated 21.5 LMT monthly sugar quota for January 2022 to 559 sugar mills which is 1.5 LMT higher than the quota allocated in January 2021. Furthermore, an extension of 30 days to sell the stocks of December 2021 has also been announced. In the previous month the Govt. fixed 21.5 LMT monthly sugar quota for domestic sale in Dec’ 2021.
The extension for December month’s quota has been announced considering the fact that some mills/ traders are facing a logistic problem to lift the quota allotted in December 2021 and hence to facilitate the dispatch of the remaining unsold quantities.
According to an industry expert, the quota is higher than that allocated in the previous years during the same period, however with the upcoming festival of Makar Sankranti the market may bring in sweeter days. Furthermore, the extension will not affect the market scenario since the unsold quantity of the previous is not too big.
The group sugar producing companies having more than one sugar producing unit 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 January 2022 been worked out on the basis of the following parameters
The January 2022 stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of December 2021.
The notional month-end stock for the month of December 2021, has been worked out on the basis of month end stock for November 2021 (as reported on P-II) further adding the sugar lifted from sugar mills after 1st August, 2021 for export as per 4.3 Column of P-II and subtracting October, 2021 for December 2021.
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 ethanol production for November 2021.