Govt releases 18.39 lakh tn sugar for Feb 2011

The government has made 18.39 lakh tonnes of sugar available for sale through open market and ration shops for the month of February 2011, which is marginally  less than the current month.

"This quantity of 18.39 lakh tonnes is sufficient to meet the internal demand of sugar for the month of February, 2011," an official release said.

The government had released 19.18 lakh tonnes of the sweetener for the current month.

Of the total allocation for the month of February, 2.16 lakh tonnes of sugar will be for supply through ration shops and 16.23 lakh tonnes in the open market, the statement added.

The food ministry fixes the quantity of sugar to be released in the open market and ration shops every month and directs mills to sell the entire non-levy quota during the same month.

The Centre had allowed duty-free import of raw and refined sugar from February 2009, to bridge the shortfall in the availability of the sweetener and curb rising prices.

India has imported 6 million tonnes of sugar since last year.

Sugar prices have declined by about 40 per cent in the last one year and are now at Rs 30-31 per kg in Delhi retail markets.