Indian govt allocates 16 lakh tonnes of sugar for sales during October 13-31 as prices surge
The next 25 days will be crucial to guard against further spurt in prices as traders anticipate negligible stock at mill levels
The Indian government has allocated 14 lakh tonnes of sugar for domestic sales during the second fortnight of October, from October 16-31. This decision comes after ex-mill sugar prices surged by nearly ₹1,000/quintal in the past 10 days. The allocation includes 16-14 lakh tonnes for domestic sugar mills and 2 lakh tonnes for importers.
The government aims to prevent further price spurt during the upcoming Diwali festival on November 8, which is a crucial period for sugar demand. The allocation has been made two days in advance to meet the trade's demand during the festival season. Of the 587 sugar mills, 134 have not received any allocation, while 39 mills have gotten quota up to 100 tonnes.
The top three sugar-producing states, Maharashtra, Uttar Pradesh, and Karnataka, have been allocated 83% of the total sugar quota. The government expects 10-15 mills to start crushing operations in Uttar Pradesh from October 20. With the upcoming Diwali festival and the need to manage the next month's demand, India requires at least 12-13 lakh tonnes of sugar production in October to meet the requirements.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
