Govt. Fixes 22 LMT Monthly Sugar Quota for Domestic Sale in July 2021

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ChiniMandi, New Delhi: In a notification issued on 29th day of June 2021, the food ministry has allocated 22 LMT monthly sugar quota for July 2021 to 555 sugar mills which is 1 LMT higher than the sugar quota allocated in July 2020. In the previous month the Govt. allocated 22 LMT monthly sugar quota for June 2021 to 555 mills.

According to market experts, the market may witness selling pressure due imposed lockdown in many states causing a slowdown in logistics alongwith monsoon.

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 July 2021 been worked out on the basis of the following parameters
The July 2021 stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of June 2021.

The notional month-end stock for the month of June 2021, has been worked out on the basis of month end stock for May, 2021 (as reported on P-II) further adding the sugar lifted from sugar mills for export as per 4.3 column of P-II (from 1st January to 31st May for the sugar season 2020-21 which is also being restricted to the MAEQ quantity allotted for the sugar mill for current season) and subtracting actual release for May 2021.

The incentive in lieu of sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar has been given corresponding to the ethanol production for May 2021 for stock holding limit order for the month of July 2021.
It is further stated that as per guidelines dated 19.01.2021 for reallocation of Maximum Admissible Export Quantity (MAEQ) for export during sugar season 2020-2021 and consequent adjustment of Monthly Release quantity on account of exchange of MAEQ quantity with domestic monthly release quantity, orders are being issued by DFPD that from time to time for exchange of MAEQ with domestic release quantity mentioning the quantity of sugar being transferred from monthly release quota of one sugar mill to another against the exchange of MAEQ.
It is relevant to mention that the adjustments mentioned in the reallocation orders have not been made in the instant domestic monthly release order and the sugar mills from where monthly release quota is supposed to be transferred (as per such reallocation orders) are not supposed to be transferred (as per such reallocation orders) are not supposed to sell that much quantity from their monthly release quota against that particular month.

For example if a sugar mills has been allocated 100 MT quota in the current order and in the reallocation order it was mentioned that mill is supposed to transfer 20 MT to another mill against exchange of MAEQ in this month, then such mill cannot sell more than 80 MT in this month and the mill to which 20 MT of sugar has been mentioned to be transferred can sell the transferred 20 MT quantity in addition to the monthly release quota of this month.

Click here to view the notification – Monthly Release Order – July 2021
Click here to view the notification – Exchange of MAEQ with Monthly Release Order

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