The government has allocated 23.5 lakh tonnes (lt) of sugar for sales during August, slightly lower than the 24 lt allotted for July. However, the mills have been given time to clear the unsold quantity of July quota by August 15, which will make an additional 1.5-2 lt of sugar available in the domestic market, enough to meet the estimated festive demand.
In a notification issued by the Directorate of Sugar, the allocated quota has been distributed among 469 sugar mills across the country and withheld in case 91 factories defaultin the monthly submission of sugar production and sales data or the closing stock report for the 2021-22 season.
Mills in Uttar Pradesh have an allocation of 8.31 lt for August, whereas the quota for July was 8.67 lt. Maharashtra’s mills have to sell 7.49 lt in August, slightly lower from 7.65 lt in July, and Karnataka’s factories have been allotted 3.47 lt of sugar against 3.79 lt. Uttar Pradesh, Maharashtra and Karnataka are the top three sugar producers in the country, and 80-90 per cent of the unsold quota of July also belongs to mills in these three states, sources said, pointing to the reduced quota.
The Indian Sugar Mills Association (ISMA), an industry body of private sugar companies, has cut its estimate of sugar production for the current season (October 2022 to September 2023), to 32.8 mt from 34 mt after taking into consideration a drop in Maharashtra output and a marginal likely increase in Uttar Pradesh and Karnataka. The annual domestic consumption is pegged at 27.5 mt. The country produced 35.76 mt in the 2021-22 season.