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Govt may fix Apr sugar sales cap at 2.2 mln tn vs 2.1 mln tn in Mar

Informist, Wednesday, Mar 31, 2021

By Preeti Bhagat

NEW DELHI – The government may set the limit for sugar that mills can sell in April at 2.2 mln tn, higher than 2.1 mln tn set in March, two senior government officials said today.

"Quota has been set higher because of summer season and domestic consumption is likely to increase during this time… apart from demand from soft drink and ice-cream manufacturers, marriage season will also start," one of the officials told Informist.

The government has been fixing the maximum quantity of sugar available for sale on a monthly basis to support prices and help mills clear cane arrears.

India consumed about 24.3 mln tn of sugar in 2019-20 (Oct-Sep), based on the monthly sales quota set by the government. The consumption, however, was much lower than the industry's estimate of 25-25.5 mln tn.

In 2020-21, India's annual domestic sugar sales are seen at 26 mln tn, translating to a little over 2.16 mln tn a month.

The government has estimated the country's sugar output in 2020-21 at 30.2 mln tn, compared with 27.4 mln tn produced last season. The estimate factors in diversion of sugarcane for the manufacture of ethanol.  End

Edited by Snigdha Kuttikat

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