Govt allocates addl 2L metric tonnes quota of sugar ahead of festival season

Govt allocates addl 2L metric tonnes quota of sugar ahead of festival season

IANS Photo

New Delhi, August 22 (IANS) Keeping in view the strong demand for sugar during the upcoming festival season, an additional quota of 2 lakh metric tonnes (over and above 23.5 LMT already allocated for this month) is being allocated for August by the government.

The additional sugar in domestic market will ensure reasonable prices all over the country, official sources said.

Despite 25 per cent increase in international sugar prices in the last one year, the average retail price of sugar in the country is about Rs 43.30 per kg and is likely to remain in range bound only.

There has been less than 2 per cent annual inflation in the country in sugar prices in last 10 years, sources added.

During the current sugar season (October-September) 2022-23, India is estimated to have a production of 330 LMT sugar after diversion of about 43 LMT for ethanol production. Domestic consumption is expected to be around 275 LMT.

At present stage, India has sufficient sugar stock to meet its domestic demand for remaining months of current SS 2022-23 and optimum closing stock of 60 LMT (sufficient to meet sugar consumption for two and a half months) will be available at the end of this season i.e. September 30.

Recent increase in sugar prices will cool down soon as each year during July-September, just before next season, prices increase and then come down on start of cane crushing.

Thus, price rise in sugar is very nominal and for short duration, official sources said.