With an aim to help millers earn more and clear cane arrears, the central government has increased sugar sale quota to 24.5 lakh tonne for March for domestic sales and dispatches. The government has allocated sugar quota for sale to each of the 524 mills in the country. The quota was 23.54 lakh tonne in February.
This increase in quota for March is attributable to various factors. There is a pattern of high sales/dispatches around this time of the year. Mills are allowed to sell sugar at a minimum selling price of Rs 31 per kg. The rate was increased recently from Rs 29 per kg. Recently, mills were also advised to go for advance booking of sugar sales to bulk consumers.
The government has been fixing sugar quota for mills since June 2018 and implementing the Sugar Price (Control) Order 2018 in order to manage surplus production in the country and to stabilise sugar prices with a view to clear cane price arrears of farmers. Sugarcane arrears to farmers have crossed Rs 20,000 crore in the current marketing year 2018-19 (October-September).
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