The government has allowed millers to sell a total of 1.77 million tonne (MT) of sugar via rations shops and in the open market next month. The government fixes the quota of sugar that each mill can sell every month.
Last month, the government had allocated a quota of 1.86 MT. "The government has decided to make available 1.77 MT of sugar for the month of July 2011," according to an official statement.
Out of 1.77 MT, the Food Ministry has asked millers to sell 1.56 MT of sugar in the open market, while the remaining 212,000 tonne is to be sold via ration shops.
"This quantity of 1.77 MT is sufficient to meet the internal demand of sugar for the month of July 2011," the statement said. The Food Ministry has also given extra time till July 15 for millers to clear the last month's quota fixed for sale in the open market.
According to the industry body Indian Sugar Mills Association (ISMA), mills have produced as much as 24 MT of sugar so far in the 2010-11 season (October-September).
The total production is estimated to be at 24.2 MT, higher than the country's annual demand of 22-22.5 MT. As the country's production has exceeded demand after a gap of two years, the government has allowed export of one MT of sugar in two tranches.
At present, retail sugar prices are in the range of Rs 30-33 per kg in most parts of the country.
