Govt allocates 5.2 MT of non-levy sugar for Oct-Dec

Keeping in view the festive demand, government has allocated 5.2 million tonnes (MT) of non-levy sugar for the October-December quarter as against 4.2 MT during the corresponding quarter last year, said a food ministry release.

Along with a carryover of 200,000 tonnes from the previous month’s unsold quota, an expected sale of 400,000 tonnes from the dismantled buffer and a levy quota of 227,000 tonnes, 2.33 MT sugar would be available for October as compared to 1.828 MT a year ago.

The quantity is sufficient to meet the festive demand during October. The government will be monitoring sugar prices in the open market closely and will not hesitate to release additional quantity if prices increase sharply, it said.
 

FESTIVE GRANT
(in lakh tonnes)	Non-levy sugar quota	Expected availability from buffer stock	Expected quantity from unsold quota	Total
October	15	4	2	21
November	15	1	-	16
December	14	1	-	15
Total	44	6	2	52

Currently, sugar is selling at the price of Rs 20-22 a kg in the retail market. “In order to avoid building up of stocks at the end of the month, the sugar mills are advised to sell at least one-third of their monthly quota in the first fortnight of the month,” it added.

The government has also decided that 2.25 MT sugar from the dismantled buffer stock, which was earlier allowed to be sold anytime between October-September 2008-09, will now have to be sold according to a quarter-wise schedule.

A quantity of 675,000 tonnes is required to be sold during October-December quarter, 450,000 tonnes during the January-March quarter, 675,000 tonnes during the April-June quarter and 450,000 tonnes during the July-September quarter.

“Any unsold quantity from the allocated quota for the current quarter shall be converted into levy sugar. Besides, penal action may also be taken against the defaulting sugar factories under the Essential Commodities Act, 1955,” said a food ministry official.

The unsold quantity from the dismantled buffer stock meant to be sold in September stands converted to levy sugar. The validity of normal non-levy quota for September has been extended by 15 days till October 15 and any unsold quantity beyond this date will also be converted to levy sugar, he added.