More sugar released

The government on Wednesday announced an additional 1,00,000 tonne sugar quota for sale in the open market in August over and above the 110 lakh tonne already released for the month.

The move is aimed at increasing supplies and curbing prices, which have spiralled in west India after torrential rains.

"We felt in the current scenario, where supplies have been disrupted due to heavy rains in many parts of the country, and prices are inching upwards, incremental supplies will have a sobering affect on the market," said a senior government official.

Additional supplies will also be handy during the upcoming festival season, which includes the festivals of Raksha Bandhan and Janmashtami.

With the additional release of 1 lakh tonne sugar, the total open market supplies in August will be 120 lakh tonne, same as in the year-earlier period.

The August quota is part of the 340-lakh-tonne quota for the July-September quarter, of which 110 lakh tonne was released for sale in July and an equivalent amount was initially released in the current month.

The quota has been increased after assessing the demand and to prevent any drastic rise in prices, which have been on the higher side for the last few days, the official said.

The supply of 120 lakh tonne of sugar during the month is expected to meet the domestic demand and keep prices consumer - and industry-friendly, they said.

The government is monitoring the price and availability of sugar in the country and with enough stocks available with mills, it is in a position to release additional quantities if the need arises, the food ministry said in a statement.

In addition, 2.16 lakh tonne will be sold through ration shops, under the public distribution system.

Therefore, the total sugar supply in the country during the month will be 141.6 lakh tonne.

In India, the government fixes the quantity of sugar each mill can sell in the market every month.