ChiniMandi Delhi, 30th April 2019: In a notification issued on 30th day of April 2019, the food ministry has allocated 21 LMT monthly sugar quota to each of 534 mills in the country along with added incentivised quota to those mills who have completed their export targets under MIEQ Quota. Column 4 of the table includes both, the allocated quota and the incentivised quota.
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 May 2019 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 2019.
The notional month-end stock for the month of April, 2019 has been worked out on the basis of month end stock for March, 2019 (as reported on P-II) adding expected production for April 2019 subtracting actual release for April, 2019. For expected April, 2019 production for corresponding period of April, 2018 has been taken into account. In case sugar mill, has not been operational during April, 2018, production for the month of March 2019 has been factored in.
The production of raw sugar by the sugar mills and the quantity of white and raw sugar dispatched from sugar mills for the purpose of export (as reported P-II) has also been added in April 2019 month end notional stock.
Those sugar mills which have completed their 75% to 100% export targets under MIEQ quota allotted to them for the sugar season 2018-19 have been given incentive in the form of additional allocation @ 10% of their normal allocation for the month of May 2019. Besides, the sugar mills which have completed 50 to 75% of their export targets under MIEQ quota for the season 2018-19 have been given @ 7.5% of their normal allocation for the month of May, 2019 by adding this incentivized quantity in column 4 of the table in this Order. No deductions have been made for non-fulfillment of export targets under MIEQ.
Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of December 2018. Except 5 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 5 sugar mills have been deducted from the proposed allocation in the month of May 2019.
In the previous month the Govt. allocated monthly sugar sale quota to 532 mills in the country to 18 lakh MT. With a very high quota announced for the month of March 2019, the Government had allowed sugar mills to carry forward their unsold sugar stocks for the month of March 2019 to April 2019.
There are hopes in the market that the prices would strengthen owing to the summer demand kicking in along with the festive demand on occasion of Ramadan.
Click here – Monthly Release Order May 2019
