In a notification on July 31, the food ministry allocated a monthly sugar quota of 22 lakh metric tonnes (LMT) for August 2024 to 573 mills, which is less than the quantity allocated in August 2023 (25.5 LMT= 23.5 LMT + 2 LMT additional).
Additionally, the validity of the sugar sales under the monthly quota for July 2024 has been extended to August 15, 2024. In July 2024, the allocated sugar quota for domestic sale was 24 LMT.
According to market experts, the announced sugar quota for August appears to be balanced, and there will be no pressure on the domestic market. Due to festivals in August, there will be good demand, and the market may witness a price increase of Rs. 30 to 50 per quintal. Considering the flood situation, the government has also extended the sugar sales quota for July.
The government has also taken stern action against sugar mills for violating stockholding limits and selling in excess of their release quota. As a result, the quota for around 160 sugar mills for August 2024 has been reduced.
Sugar mills have been directed to ensure the compliance of mandatory packaging of 20% of sugar in jute bags under Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987and submit the information thereof in P-II proforma on NSWS portal.
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