New Delhi, November 14 (TNA) The Union Government has fixed the domestic sugar quota at 13 lakh metric tonnes for the second fortnight of November, according to an official statement issued by the Department of Food and Public Distribution. The move is aimed at ensuring steady availability of sugar in the domestic market during the ongoing crushing season.
Under the decision, sugar mills are permitted to sell sugar produced up to November 30 over and above their allocated quota. The facility is applicable to mills that commenced crushing operations in November, as well as those that had already begun crushing in October.
Additional Sales Allowed
The Department said sugar mills that started crushing operations in October are already permitted to sell the sugar produced during that month in November. This allows mills to liquidate additional stocks and maintain a smoother supply chain in the domestic market.
The 13 lakh metric tonne quota for the second fortnight of November is part of the Government’s ongoing effort to balance domestic availability with the needs of the sugar industry.
Context of the Decision
The decision comes amid fluctuating sugar prices and concerns over supply in certain regions. By allowing mills to sell sugar produced up to November 30 beyond the allocated quota, the Government aims to prevent shortages and ensure that consumers have access to sugar at reasonable prices.
The move is also expected to provide relief to sugar mills, which have been facing pressure due to rising production costs and fluctuating market demand.
Industry Response
Industry stakeholders have welcomed the decision, saying it will help maintain stability in the sugar market. The additional sales allowed under the new quota are expected to boost liquidity for mills and support timely payments to cane farmers.
The Government is likely to review the quota and supply situation again at the end of the month, depending on production trends and market demand.