The government has released 19 lakh tonnes sugar in the open market and through the public distribution system (PDS) in September, 2010, about 20,000 tonnes lower than last month.
It will, however, release more sugar during the month in case the prices increase sharply.
"This quantity of 19 lakh tonnes is sufficient to meet the internal demand of sugar for the month of September. However, if sugar prices increase sharply, the government would not hesitate in releasing more non-levy sugar for the month," a senior Food Ministry official said.
Of the total allocation for September, the Food Ministry has allocated 2.28 lakh tonnes of sugar for supply through ration shops (called levy sugar) and 16.72 lakh tonnes in the open market (know as non-levy sugar), the official said.
Last month, the ministry had released 19.20 lakh tonnes of the sweetener.
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 official said however that the mills have been given 15 days extra, till September 15, to sell the non-levy sugar quota of August.
The non-levy quota of 16.72 lakh tonnes for September includes 2.14 lakh tonnes of imported sugar.
The Centre had allowed duty-free imports of raw and refined sugar from February, 2009, to bridge the shortfall in 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 since mid-January and are now at Rs 30 a kg in Delhi retail market.
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