ChiniMandi, New Delhi: In a notification issued on 26th day of April 2023, the food ministry has allocated 24 LMT monthly sugar quota for May 2023 to 558 sugar mills which is 1.5 LMT higher than the quantity allocated in May 2022.
According to marketmen, “The announced quota for May 2023 has exceeded expectations. Last year, with a quota of 22.5 LMT prices had remained stable. However, this year, the Government has increased the quota by an additional 1.5 LMT indicating its efforts to prevent any further rise in prices. With this increased supply, there is a possibility that prices may get corrected in the coming days. Further, the additional allocated quota of April 2023 is overhanging in the market which can cause traders less involved in the first week of May causing pressure on ex mill prices.”
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 May 2023 been worked out on the basis of the following parameters
The May 2023 stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of April 2023.
The notional month-end stock for the month of April 2023, has been worked out on the basis of month end stock for March 2023 (as reported on P-II) further adding the sugar lifted from sugar mills after 1st November 2022 for export as per 4.3 Column of P-II and subtracting actual release for April 2022.
Besides, incentive in lieu of sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar is being given corresponding to the ethanol production for March 2023.
