New Delhi (Commodities Control) Central Government has issued a quota of 17 Lakh MT of sugar for February 2021. The quota was expected to come down as there will be only only 28 days in the next month. But excessive cut in quota is expected to strengthen the market. The government had issued a quota of 20 Lakh MT of sugar for February last year. The government had given a quota of 21 lakh tonnes for January 2021.
Market sources had estimated that 18-18.5 lakh tonnes of quota could be released due to weak demand and only 28 days in February. But the government has issued a quota lower than this estimate. This time three lakh tonne lower quota has been given as compared to last year's quota of February.
An industry expert from Hyderabad said that the government wanted to motivate the mills for exports. The issuance of lower quota would put extra pressure on millers for export. It will balance the excess sugar available in the country. According to sources 17 lakh tonne quota was also recommended by the industry. Due to limited availability, there will be hope for improvement in prices. Currently, many mills are selling below the minimum selling price (MSP) of Rs 3100 per quintal. Since there are no major festivals in February, the quota is considered sufficient for consumption.
(By Commoditiescontrol Bureau: +91-22-40015505)
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