Informist, Friday, Sep 27, 2024

MUMBAI – The Centre has set the domestic sugar sales quota for October at 2.55 mln tn, the food and public distribution department said in a post on social media platform X on Thursday. The quota for October is up 8.5% on month from 2.35 mln tn in September and down nearly 12% on year. In October 2023, the quota was set at a total of 2.9 mln tn.

The government had set the sales quota in tranches in October last year. The first tranche was set at 1.3 mln tn and sugar mills had to meet this quota by Oct 10, then the second tranche for the month was set at 1.5 mln tn. The government then added another 105,730 tn to the second tranche of the sugar sales quota for October.

The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers.

On Aug 22, the Department of Food and Public Distribution issued a draft Sugar (Control) Order 2024, merging the Sugar (Control) Order, 1966 and Sugar Price (Control) Order, 2018. The draft proposed amending the regulations regarding production, sales, storage, and pricing of sugar and other sugarcane by-products. The draft proposes to replace the existing Sugar (Control) Order, 1966.

Under the Sugar (Control) Order, 1966 and Essential Commodities Act, 1955, the government can impose stock holding limits to prevent market distortions and ensure availability of the sweetener in the country at affordable prices. Against non-compliant mills, the government can take a slew of measures, including deducting sales quotas or denying quotas altogether.

The deducted quotas of non-compliant mills will be distributed amongst the other compliant mills while issuing the monthly stock holding orders, it added.

The draft amendment calls for increased compliance in data disclosure. The government has also issued stricter quality standards to improve accountability. The government has been pushing sugar mills to digitise their operations and bring transparency in the sector.

Apart from sugar, the draft proposal has extended regulations to other by-products like molasses-based ethanol, compressed biogas, and press-mud, a waste product of the sugar industry that is also known as filter cake or press cake. End

Reported by Taniva Singha Roy

Edited by Vidhi Verma

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