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Co-op sugar mills ask govt to allow sale of Apr quota till May 31

Informist, Wednesday, Apr 7, 2021

 

By Preeti Bhagat

 

NEW DELHI – The National Federation of Cooperative Sugar Factories has asked the government to allow mills to sell their April sales quota till May 31 as demand has been sluggish due to the resurgence in COVID-19 cases, two industry sources said.

 

The government had fixed sugar sales quota for mills at 2.2 mln tn for April.

 

"Cooperative sugar mills are not able to offload their inventory, which may result in not being able to meet working capital requirements, including non-payment of cane price to sugarcane growers," one of the sources told Informist.

 

The excessive sales quota for April creates an imbalance with the market requirement, and led to a fall in ex-mill prices in Maharashtra and Karnataka, below the minimum selling price of 31 rupees per kg, another source said.

 

To improve the liquidity situation among millers, the federation has also sought a lower sales quota for sugar mills in May.

 

"An early announcement on this will improve the current depressing market sentiments and help sugar mills sort out liquidity problems to a certain extent, thereby clearing cane dues," one of the sources said.

 

The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear cane arrears.  End

 

Edited by Nidhi Chugh

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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