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With the recently allocated 21 LMT monthly sugar quota to 534 mills in the country along with added incentivized quota to those mills who have completed their export targets under MIEQ Quota, the market started taking an uptrend and prices started getting firm. The industry expects that the market continues to gain sweetness.
Speaking with ChiniMandi.com, Mr.Prakash Naiknavare, Managing Director of National Federation of Cooperative Sugar Factories, said, “The future of the sugar industry is entirely in our hands. We should begin making the current and upcoming months advantageous keeping in mind that the quota announced is very reasonable, non-extension of lapsed quota and the soaring summer demand are the fundamental advantages we have in our hands. It’s time for the industry to staunchly and collectively help sustain and maintain the ex-mill sugar prices above ₹3100/qntl. If we succeed with this, there is a high possibility of prices touching ₹3300/qntl level by the end of May.”
For the current month’s announced quota, the sugar mills which accomplished export targets under MIEQ quota allotted to them for the sugar season 2018-19 have been given incentives in the form of additional allocation @ 7.5 to 10% of their normal allocation for the month of May 2019.
The market seemed to be quiet with scanty demand since the past few weeks in spite of MSP being hiked, however after the announcement of the quota for May has brought rays of hopes for better market conditions. With the ongoing summer, various states across the country have registered temperature over 40 degrees celcius, whereas states like Rajasthan has crossed 43 to 48 degrees. Owing to the scorching heat, sugar consumption will be excessive it is also expected that allocated quota for May will be exhausted smoothly due to good demand.
