With the arrival of normal quota, there is less possibility of softening of sugar prices.

04-Nov-2024 04:42 PM

New Delhi. The Union Food Ministry has declared a free sale monthly quota of 22 lakh tonnes of sugar for November 2024, which is 3.50 lakh tonnes less than the quota of 25.50 lakh tonnes fixed for October.

Compared to October, the quota of most states has been reduced for November, which also includes top producing states like Maharashtra, Uttar Pradesh and Karnataka.

The free sale quota of sugar has been reduced by 1.74 lakh tonnes in Maharashtra, 1.09 lakh tonnes in Uttar Pradesh and 17 thousand tonnes in Karnataka.

Similarly, the sugar quota has been reduced by 14 thousand tonnes in Bihar, 18 thousand tonnes in Gujarat, 8 thousand tonnes in Haryana, 6-6 thousand tonnes in Andhra Pradesh and Madhya Pradesh and more than 5 thousand tonnes in Uttarakhand.

Only in Tamil Nadu and Rajasthan, the free sale quota of sugar has been increased by 8 thousand tonnes and 2 thousand tonnes respectively.

Of course, the festive season is almost over, but the season of Lagnasara and auspicious festivals is starting, due to which the demand for sugar may remain strong.

In view of this, the possibility of softening of prices will be negligible. Private sector sugar mills in the most prominent producing state - Maharashtra have indicated that it is doubtful whether the crushing of sugarcane will start from the scheduled date of November 15.

The millers there have demanded an increase in the ex-factory minimum selling price (MSP) of sugar and the purchase price of ethanol for the oil marketing companies from the Central Government and it is doubtful whether the crushing of sugarcane will start until this is not met.

The millers there have demanded an increase in the ex-factory minimum selling price (MSP) of sugar and the purchase price of ethanol for the oil marketing companies from the Central Government and it has decided not to start the crushing of sugarcane until this is not met.