The government today allocated 1.61 million tonnes of sugar for sale in the open market and distribution through ration shops for the current month.
Sugar allocated to meet the demand of this month is, however, lower than 1.72 million tonnes released last month.
Out of total quota released for February, the Food Ministry has earmarked 1.4 million tonnes for sale in the open market (called non-levy sugar) and the remaining 212,000 tonnes would be for ration shops (called levy sugar).
"The government has decided to make available 1.61 million tonnes of sugar (levy sugar 212,000 tonnes and non-levy sugar 1.4 million tonnes) for the month of February, 2012," an official statement said.
This quantity of 1.61 million tonnes is sufficient to meet the internal demand of sugar this month, it added.
The ministry has directed sugar mills to sell the entire non-levy quantity released in the current month itself.
Sugar mills contribute 10% of their contribution to the government for distribution through ration shops.
The sector is controlled by the government, which decided every month the quantity of sugar to be released in the open market.
Sugar production in India, the world's second largest but the largest consumer, is expected to be 24.5 million tonnes in the 2011-12 season (October-September), higher than the annual demand of 21.5 million tonnes.
