In a notification issued on 31st August, 2023, the food ministry has allocated 25 LMT monthly sugar quota to 473 sugar mills for September 2023 which 1.50 LMT higher than the quantity allocated in September 2022. September’s quota is 50,000 MT less than than the previous month’s domestic quota.
Check the allocation list state wise sugar quota
According to market experts, keeping in view the strong demand for sugar for upcoming festivals high sugar quota has been allocated to sugar mills. The higher quota will keep sugar prices under control.
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 September, 2023 as given in column (7) of the table, has been worked out on the basis of following parameters:-
The September, 2023 Stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of August, 2023.
The notional month-end stock for the month of August, 2023 has been worked out on the basis of month end stock for July, 2023 (as reported in P-II), further adding the sugar lifted from sugar mills during 1st November, 2022 for export as per 4.3 Column of P-II as well as NSWS portal and subtracting actual release for August, 2023.
Besides, incentive in lieu of sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar is being given corresponding to the reported ethanol production for July, 2023.
According to the notification, All sugar mills are informed that they have to register and fill online P-II on National Single Window System (NSWS) portal (https://www.nsws.gov.in). If the sugar mill does not fill online information on NSWS portal for the month of August, 2023 by 15th September, 2023; monthly release quota will not be allocated for the month of October, 2023 to those sugar mills. All the sugar mills/distilleries are informed that information relating to ethanol production from B-Heavy, Sugar Syrup, Sugarcane Juice shall also filled on NSWS portal in the P-II form itself. For allocation of quota, data from NSWS portal only will be considered and no P Il data from any other means/portal will be considered.
Few Sugar mills have still not submitted their actual stock verification as on 31.07.2023 duly certified by Cane Commissioner Office, as mentioned with special character “@” in column (8) in the said table. These sugar mills have been allotted monthly quota for the current month i.e. September, 2023. However, in case the sugar mills still not able to submit their actual stock verification by 15th September, 2023 no monthly quota will be allotted for the month of October, 2023.
The notification further reads, all the sugar mills have to ensure strict compliance of monthly Stock holding limit orders for sale of sugar in the domestic market. Each sugar mill is expected to sell at least 90% of the monthly quota allocated in the respective month. In case, any sugar mill is finding it difficult or unable to sell full quantity of its monthly quota for a particular month, same shall be intimated by the mill before 15th day of every month clearly mentioning the possible quantity to be sold. In case a mill fails to inform and does not sell the quantity allocated, the difference in the quantity allocated and the quantity sold will be reduced from the calculated quota of following month as mentioned vide order No. 5-4/2020-SC dated 10.08.2023. Any violation of this order would attract the penal provisions under the Essential Commodities Act, 1955, as amended from time to time.
Click here to read the notification
