The sugar season for 2024-25 is approaching, and sugar mills are gearing up to commence the season. However, excessive and continuous rainfall in Maharashtra and across the country during September 2024 has led to restrictive lifting of sugar at the mills level, causing stocks to climb. As a result, the industry is urging the government to allow a lower monthly sugar quota for October 2024.
Millers state that if the government permits a higher sugar quota for October 2024, the mills’ financial liquidity could suffer.
In a communication to the Department of Food and Public Distribution (DFPD), the sugar body WISMA urged a lower sugar quota for October 2024, stating, “We would like to invite Your kind attention towards excessive and continuous rainfall in the state of Maharashtra and countrywide during the month of September-2024. This has resulted in to disruption of rail and road traffic adversely, leading to restrictive lifting of sugar at sugar mills level, poor offtake by the dealers, thin sales and retail consumers turned back due to climatic conditions. The sugar stocks climbed up due to this situation prevailing at sugar mill and dealers level. Therefore, it would be ideal to release October-2024 sugar release quota below 22 lakh tonnes at national level, in order to help and support for the sales of September-2024 unsold quotas at sugar mill and dealers level. This would arrest the downfall in sugar prices and congenial for start up of new Sugar Season -2024-25 w.e.f. 1st October-2024.”
The industry has also expressed concern that higher monthly sugar quotas could exacerbate financial challenges due to lower prices and demand.
The Food Ministry allocated a monthly sugar quota of 23.5 lakh metric tonnes (LMT) for September 2024.
