Govt. Fixes 20.50 LMT Monthly Sugar Quota for Sale in August 2020
The allocated quota for August 2020 is 1.50 MT higher than the quota allocated for sale in August 2019 which stood at 19 LMT. In the previous month the Govt. allocated 21 LMT quota for July 2020 to each 546 mills in India. In view of the heavy floods being experienced in the State of Bihar, the time period for the monthly sale quota of sugar for July 2020 has been extended by 15 days ie till 15th August 2020 only for the State of Bihar.
In the month of July 2020, millers had witnessed fresh buying due to the rumours of hike in Minimum Selling Price (MSP) of sugar which has been talked of from Rs.31/kg to Rs.33/kg. Some demand had also been witnessed due to the easing nationwide lockdown due to the coronavirus pandemic. According to market experts, demand for sugar is yet likely to pick up pace since the country has reached the scenario of complete unlocking. Once hotels, restaurants, theatres, malls etc. open, the industry shall witness the actual demand coming in.
The group sugar producing companies having more than one sugar producing unit 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 August 2020 been worked out on the basis of the following parameters:
The August 2020 stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of July 2020.
The notional month-end stock for the month of August 2020, has been worked out on the basis of month end stock for June, 2020 (as reported on P-II) further adding the sugar lifted from sugar mills for export as per 4.3 column P-II and subtracting actual release for July 2020.
The incentive in lieu of sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar has been given corresponding to the ethanol production for June 2020 for stock holding limit order for the month of August 2020.