Govt. Fixes 23 LMT Monthly Sugar Quota for Sale in October 2020

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ChiniMandi, New Delhi: In a notification issued on 28th day of September 2020, the food ministry has allocated 23 LMT monthly sugar quota for October 2020 to each of 547 mills in India.

The allocated monthly sugar quota for October 2020 is 2 LMT higher than the quota allocated for sale in October 2019 which stood at 21 LMT. In the previous month the Govt. allocated 22 LMT monthly sugar quota for September 2020 to each 547 sugar mills in India.

According to an industry expert who does not want his name to be mentioned, “Major Hindu festivals like Navratri & Dussehra etc. are lined up during the month of October 2020. However, the quota allocated has been higher by 2 LMT than that of the previous year and the unprecedented Covid-19 pandemic has completely changed the market dynamics; therefore a relatively less demand looks to be on the cards with the October month’s quota. The debate will continue whether October quota is bullish or bearish for the sugar industry.”

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 October 2020 been worked out on the basis of the following parameters:The October 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 September 2020.

The notional month-end stock for the month of September 2020, has been worked out on the basis of month end stock for August, 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 September 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 August 2020 for stock holding limit order for the month of October 2020.

Click here to view the notification – Monthly Release Order – October 2020

 

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