ChiniMandi Delhi, 31st January 2020: In a notification issued on the 31st day of January 2020, the food ministry has allocated 20 LMT monthly sugar quota for February to each of 543 mills in India.
The allocated quota for February 2020 is 1 LMT lower than February 2019’s month quota that stood at 21 LMT. In the previous month the Govt. allocated 22 lakh MT monthly sugar quota in January 2020 to 537 mills in the country. Sugar millers have witnessed moderate demand in the month of January due to continuous piling of sugar stocks owing to sharp fall of sugar production in the new sugar season. As per sources, traders in the industry are quite interested in stocking of sugar to enjoy the suitable benefits of the market trend with good demand and therefore market men are optimistic about the sentiments to remain positive, demand to be good and prices to be firm.
The group sugar producing companies having more than one sugar producing units 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 Maximum quantity of white/refined sugar for domestic sale and dispatch during the month of February 2020 been worked out on the basis of the following parameters:
The February 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 January 2020.
The notional month-end stock for the month of January 2020, has been worked out on the basis of month end stock for December, 2019 (as reported on P-II) adjusting the difference in the actual and the estimated production of December, 2019 (received from sugar mills) further adding the sugar lifted from sugar mills for export as per 4.3 column P-II and subtracting actual release for January 2020.
The difference in the actual and the estimated sugar sacrificed for producing ethanol with B heavy molasses/sugarcane juice/sugar syrup/sugar of December 2019 has been adjusted. Incentive in lieu of estimated sugar sacrificed for the month of January 2020 (received from sugar mills) for producing ethanol from B heavy molasses/sugarcane juice/sugar syrup/sugar has been given for issuing stock holding limit Order for the month of February 2020.
Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of September 2019. Except 3 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 3 sugar mills have been deducted from the proposed allocation in the month of February 2020.
Click her to view the notification Monthly Release Order – February 2020
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