Govt allocates 27 lakh tonnes sugar quota to mills for domestic sales in May

The Centre has raised the monthly sugar quota to 27 lakh tonnes (lt) for May from 25 lt released for April, to meet the extra demand during election campaign. The current allocation for May is also higher by 3 lt from the year-ago period.

The government decides how much sugar to be sold in the domestic market every month and accordingly allocates quota for each mill.

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According the food ministry’s notification issued on Tuesday, some 214 mills in Maharashtra have been allotted 10.17 lt, while 120 mills in Uttar Pradesh received quota of 9.06 lt and 68 mills in Karnataka have got 3.51 lt sugar quota for May.

Though the industry was apprehending additional quota over and above 25 lt in April 2024, the government did not do that as prices remain stable. However, with marginal increase in sugar prices recently, after mills were allowed to sell ethanol already in stock as well as to make the biofuel from the B-Heavy molasses, the higher allocation may help the government to arrest any further rise, an industry official said.

In the official order issued by the food ministry on April 30, the government also said that it has cut the allocation of some sugar mills by 25 per cent of their eligible quota after finding that these companies sold more than they were allotted in February.

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There are 25 sugar mills of Uttar Pradesh in the list whose quotas are cut while 13 mills in Maharashtra and 10 mills in Karnataka have also got lower allocation due to violation of stock.