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Informist, Friday, Aug 30, 2024

NEW DELHI – The Centre has raised the September sugar sales quota for Maharashtra and Uttar Pradesh by 18% and 2%, respectively, on a month-on-month basis. The quotas for Maharashtra and Uttar Pradesh for September are 914,349 tn and 775,442 tn, respectively, according to a notification by the Food and Public Distribution Department today. For Karnataka, another major producer of the sweetener, the sales limit was raised by 10% from last month to 311,040 tn.

The Centre on Wednesday set the domestic sugar sales quota for September at 2.35 mln tn, up from 2.20 mln tn last month, and lower than 2.50 mln tn in the same month last year.

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. As of Apr 30, mills in the country had produced 31.4 mln tn sugar, according to the Indian Sugar & Bio-energy Manufacturers Association. The association expects an additional production of 500,000-600,000 tn of sugar from Karnataka and Tamil Nadu, taking the total output in the country to around 32.0 mln tn this season. According to ISMA, mills in Karnataka and Tamil Nadu will conduct crushing operations during the special season in Jun-Sep.

The government said some mills across the country had violated the stockholding limits and sold sugar in excess of their release quota for June. Consequently, it was decided that the excess quantity of sugar sold during June be deducted from the quota for September for the concerned mills, the government said in a release. The government also said that mills which dispatched less than 90% of the quota for June without intimation, the release quota up to the extent of utilisation in June is allowed in August.

All sugar mills have also been ordered to register and fill in the online personal history form on the National Single Window System portal for August, and if any of them fail to do so by Sep 10, the domestic sales quota for October will not be released to them, the government said. Information relating to ethanol production from B-heavy molasses, sugar syrup and sugarcane juice must also be given on the portal, it said.

India's sugar production in the current season ending September is seen at 32 mln tn, down from 33.1 mln tn last year, according to the National Federation of Cooperative Sugar Factories. Last month, Informist had exclusively reported quoting ISMA's preliminary estimates that India's total sugar production in 2024-25 (Oct-Sep), without diversion to ethanol, is likely to be 33.31 mln tn, down 2% from last season.

The following table details the state-wise allocation of sugar sales limit for September, with the month-ago level, and the month-on-month change in percentage:

End

Reported by Sayantan Sarkar

Edited by Ashish Shirke

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