The government has allocated 19.15 lakh tonne of sugar for sale in the open market and through ration shops during November, about 82,000 tonne lower than the current month.
For the current month, the government has allocated more quantities at 19.95 lakh tonne keeping in view of higher demand during Diwali.
"This quantity of 19.15 lakh tonne is sufficient to meet the internal demand of sugar for the month of November, 2011," an official statement said.
Out of the total allocation for the next month, the food ministry has earmarked 2.14 lakh tonne of sugar for supply through the Public Distribution System (called as levy-sugar).
The remaining 17.01 lakh tonne would be sold in the open market (called as non-levy sugar).
The Food Ministry fixes the quantity of sugar to be sold in the open market and ration shops every month and directs mills to sell the entire non-levy quota during the same month.
Sugar mills are required to contribute 10% of their production to the government at cheaper rates for distribution through PDS.
The retail prices of the sweetener have declined by about 40% since January last year and are currently ruling at Rs 30-32 a kg in the national capital.
Sugar production of India, the world's second largest producer and biggest consumer, stood at 243 lakh tonne as against the annual domestic demand of 210-215 lakh tonne.
