Govt. Fixes 21.5 LMT Monthly Sugar Quota for Sale in June 2019

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ChiniMandi Delhi, 31st May 2019: In a notification issued on 31st day of May 2019, the food ministry has allocated 21.5 LMT monthly sugar quota to each of 534 mills in the country 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 June 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 May 2019.

The notional month-end stock for the month of May, 2019 has been worked out on the basis of month end stock for April, 2019 (as reported on P-II) adding expected production for May 2019 subtracting actual release for May, 2019. For expected May, 2019 production for corresponding period of May, 2018 has been taken into account.

The production of raw sugar by the sugar mills and 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 May 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 June 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 June, 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 64% of the reported ethanol production from B heavy molasses (reported on P-II) during the month of January 2019 and March 2019 for June 2019 stock holding limit order.

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

Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of January 2019. Except 7 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 7 sugar mills have been deducted from the proposed allocation in the month of June 2019.

In the previous month the Govt. allocated 21 lakh MT monthly sugar sale quota to 534 mills in the country. There are hopes in the market that with the continuation of rising mercury, for the time being the prices would remain firm.

Click here to view Notification – Monthly Release Order June 2019

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SOURCEChiniMandi

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