Nov sugar quota at 1.3 mn tonne

The government is likely to set the open market sugar sale quota for November at 1.3 million tonne, while in December 1.2 million tonne is expected to be allocated, a senior government official said.

"We will release more quantities if prices show an upward spiral," said the official. He said the government's main aim is to keep prices under check and that there are enough stocks.

Last year, the government had allocated 1.2 million tonne of sugar for November open market sale quota, while in December 1.1 million tonne was allocated.

In October the government had set the quota at 1.6 million tonne. In India, the government sets the quantity each mill can sell in the open market every month.

"We have been releasing higher quantities of sugar each month. The wholesale prices have remained under Rs 19 a kg," the official said.

However, despite various government interventions like clamping exports, and releasing higher amount of sugar for open market sale every month, retail prices are still ruling as high as Rs 21 a kg, especially in Delhi.

Wholesale sugar prices in Muzzaffarnagar spot market were trading Rs 10 higher at Rs 1,865 per 100 kg.