ChiniMandi Delhi, 30th September 2019: In a notification issued on 30th day of September 2019, the food ministry has allocated 21 LMT monthly sugar quota for October to each of 535 mills in India along with added incentivized quota to those mills who have completed their export targets under MIEQ Quota. The allocated quota of October 2019 is 1LMT lower than the preceding year’s October month quota that stood at 22LMT.
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 October 2019 as given in column 4 of the table has been worked out on the basis of the following parameters.
The notional month-end stock for the month of September 2019, has been worked out on the basis of month end stock for September, 2019 (as reported on P-II) and subtracting actual release for September 2019. Since most of the mills have stopped operations during September 2019 hence no estimated production has been taken into account.
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 September 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 October 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 October, 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.
Incentive in lieu of sugar sacrificed for producing ethanol from B heavy molasses have been given by adding additional quantity in column 4 of the table of this order, corresponding to the reported ethanol production from B heavy molasses (reported on P-II) for May 2019 for stock holding limit Order for the month of October 2019.
Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of May 2019. Except 8 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 8 sugar mills have been deducted from the proposed allocation in the month of October 2019.
In the previous month the Govt. allocated 19.5 lakh MT monthly sugar quota in September to 535 mills in the country. October month’s quota is likely to bring sweetness in the market with the ongoing Hindu festivals Navratri/Durga Puja & dawn of Diwali. Sugar millers will also be able to witness and maintain the demand supply balance, stabilize the prices of sugar and to improve their liquidity position by the recently taken step of the Government by announcement of sugar export policy of 60LMT. Positive sentiments for sugar prices supported by the Indian festivals along with export demand are likely to keep the market flow smoothly and prices firm.
Click here to view the Notification – Monthly Release Order October 2019
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