ChiniMandi Delhi, 31st December 2019: In a notification issued on the 31st day of December 2019, the food ministry has allocated 22 LMT monthly sugar quota for January to each of 537 mills in India along with added incentivized quota to those mills who have completed their export targets under MIEQ Quota.
The allocated quota for January 2020 is 3.5 LMT higher than January 2019’s month quota that stood at 18.50 LMT. In the previous month the Govt. allocated 21.50 lakh MT monthly sugar quota in December 2019 to 535 mills in the country. Since a few days, the sugar millers have witnessed moderate demand in the month of December due to the festival of Christmas and holiday mood. However, the sugar industry anticipates witnessing a good demand with the nearing festive demand of Makar Sankrant and continous piling of sugar stocks owing to sharp fall of sugar production in the new sugar season. As per sources, traders in the industry are quite interested in stocking of sugar to enjoy the suitable benefits of the market trend with good demand.
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 January 2020 been worked out on the basis of the following parameters:
The January 2020 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, 2019.
The notional month-end stock for the month of December 2019, has been worked out on the basis of month end stock for November, 2019 (as reported on P-II) adjusting the difference in the actual and the estimated production of December, 2019 (received from sugar mills) further adding the sugar lifted from sugar mills for export as per 4.3 column P-II and subtracting actual release for December 2019.
Incentive in lieu of estimated sugar sacrificed for the month of December, 2019 (received from sugar mills) for producing ethanol from B heavy molasses/sugarcane juice/sugar syrup/sugar has been given for issuing stock holding limit Order for the month of January 2019.
Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of August 2019. Except 5 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 5 sugar mills have been deducted from the proposed allocation in the month of January 2020.
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