In the dynamic world of sugar trade, the Government of India has taken a significant step by unveiling the first tranche of the November domestic sugar quota, amounting to a substantial 1.5 million tonnes. This allocation is set to remain valid until November 15, 2023. The Ministry of Consumer Affairs, in a notification issued on Monday, October 23, has shared this momentous decision.
The disbursement of this domestic sugar quota encompasses 562 sugar mills and is instantly effective. Each sugar mill’s allotment for white/refined sugar, destined for domestic sales and dispatch during November 2023, has been meticulously calculated, taking into account several crucial factors. The stock limit for November 2023 is based on a meticulous formula, assigning a total of 100 percent weighting to the notional closing stock at the end of October 2023, as per the official notification.
The intricacies of this allocation involve an elaborate process, with the notional closing stock for October 2023 being determined by evaluating the closing stock figures for September 2023 and then factoring in the October 2023 release, as explained in the notification.
Furthermore, the government has recently introduced restrictions on sugar exports, extending indefinitely, with the primary objective of ensuring a steady and ample supply of sugar for domestic consumers. This strategic move aims to guarantee that sugar remains accessible to local consumers at affordable prices throughout the year, effectively addressing their needs.
This initiative also plays a vital role in safeguarding a robust sugar stockpile within the nation, which is crucial to maintaining consistency in India’s fervent pursuit of cleaner and more sustainable energy sources through the ethanol-blended fuel program.
With this backdrop, the sugar industry braces for an eventful November, where balancing domestic demand, export restrictions, and the release of quotas will be critical. The release of this first tranche sets the stage for a complex interplay between market dynamics and government policy, a storyline that continues to unfold.
