ChiniMandi, New Delhi: In a notification issued on 31st day of August 2020, the food ministry has allocated 22 LMT monthly sugar quota for September 2020 to each of 547 mills in India.
The allocated quota for September 2020 is 2.5 LMT higher than the quota allocated for sale in September 2019 which stood at 19.5 LMT. In the previous month the Govt. allocated 20.50 LMT quota for August 2020 to each 546 mills in India and in view of the heavy floods being experienced in the State of Bihar, the time period for the monthly sale quota of sugar for July 2020 has been extended by 15 days i.e. till 15th August 2020.
In the month of August 2020, millers continued to witness fresh buying due to the rumours of hike in Minimum Selling Price (MSP) of sugar which has been talked of from Rs.31/kg to Rs.33/kg. Some demand had also been witnessed with the ease in nationwide lockdown due to the coronavirus pandemic.
According to market experts, major Hindu festivals like Dussehra and Diwali etc. are lined up during September to November months. Auspicious muhurat for marriages are also likely post September, therefore demand is likely to pick more pace in the coming days.
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 Maximum quantity of white/refined sugar for domestic sale and dispatch during the month of September 2020 been worked out on the basis of the following parameters:
The September 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 August 2020.
The notional month-end stock for the month of August 2020, has been worked out on the basis of month end stock for July, 2020 (as reported on P-II) further adding the sugar lifted from sugar mills for export as per 4.3 column P-II and subtracting actual release for August 2020.
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 July 2020 for stock holding limit order for the month of September 2020.
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