Government Allocates Additional 200,000 Tonnes of Sugar to Mills for Festive Season Sales

To ensure a steady supply of sugar and maintain reasonable prices during the festive season, the government has taken steps to allocate an extra quota of 200,000 tonnes of sugar for this month. This is in addition to the 23.5 million tonnes already allotted to mills.

Given the anticipated demand for sugar during upcoming festivals such as Onam, Raksha Bandhan, and Krishna Janmashtami, an official statement announced the allocation of this extra quota for August 2023. The primary objective is to stabilize sugar prices across the nation’s domestic market.

Despite a notable 25% rise in international sugar prices over the past year, the average retail price of sugar in India remains approximately Rs 43.30 per kilogram. This cost is projected to stay relatively stable, as sugar prices in the country have experienced less than a 2% annual inflation rate over the past decade.

Throughout the current sugar marketing year (October-September) of 2022-23, India has produced an estimated 33 million tonnes of sugar. Around 4.3 million tonnes of sugar were diverted for ethanol production. Domestic consumption is forecasted to be roughly 27.5 million tonnes.

The official statement confirmed that India’s sugar stock is currently sufficient to meet domestic demand for the remaining months of the 2022-23 season. It also stated that an optimal closing stock of 6 million tonnes, enough to cover two and a half months of sugar consumption, will be available by September 30, 2023, marking the end of the season.

The recent upward trend in sugar prices is expected to subside soon. It is a recurring pattern where prices typically increase during July-September, just before the beginning of the next season, only to decline as cane crushing commences.

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