The Indian government has set its sights on the nation’s sweet tooth by allocating 2.35 million tonnes of sugar for August. This allocation is slightly lower than the previous month. However, the tale has a twist that promises to bring an additional 0.15-0.2 million tonnes of sugar into the domestic market by August 15. This strategic move aims to meet the anticipated demand during the upcoming festivals.
In a notification from the Directorate of Sugar, the allocated quota has been smartly distributed among 469 sugar mills across India. However, the government has also decided to withhold the quota for 91 factories that have defaulted in submitting monthly sugar production and sales data or the closing stock report for the 2021-22 season. This strategic measure puts the onus on the defaulting mills to clear their unsold quantities from the previous month.
August quotas
Mills in Uttar Pradesh, Maharashtra, and Karnataka, the country’s leading sugar producers, have received their August quotas. Uttar Pradesh mills have been allocated 0.831 million tonnes, while Maharashtra’s mills have to sell 0.749 million tonnes. Karnataka’s factories received an allocation of 0.347 million tonnes of sugar. However, these three states also hold 80-90 percent of the unsold quota from July, resulting in slightly reduced allocations for August.
The Indian Sugar Mills Association (ISMA) has revised its sugar production estimate for the current season, considering changes in Maharashtra’s output and slight increases in Uttar Pradesh and Karnataka. The current estimate stands at 32.8 million tonnes, down from the previous 34 million tonnes. Domestic consumption is pegged at 27.5 million tonnes, with the country producing 35.76 million tonnes in the last season (2021-22).
The government’s thoughtful allocation strategy aims to balance sugar supplies and ensure ample availability during the festive season. With a calculated approach to withholding quotas from defaulting mills, it encourages timely actions and boosts the domestic market.
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