The Centret has allocated a 2,25 million tonnes (mt) as monthly sugar quota for May, up 0,5 mt over the May 2021 quota.
In a notification issued by the Directorate of Sugar and Vegetable Oils, the Ministry of Consumer Affairs, Food, and Public Distribution has allocated the quota to 531 sugar mills across the country.
The May 2022 stock holding limit has been worked out on the basis of giving 100 per cent weight-age to the month-end notional stock this month. Market players expect seasonal demand for the commodity as States have relaxed Covid-19 norms.
From October 1 till April 15, sugar mills across the country have produced 32,991 mt of sugar, which is 38,09 mt higher than 29,182 mt produced during the same period a year ago, as per the Indian Sugar Mills Association (ISMA) data.
India is the world’s second-largest sugar producer after Brazil. Since 2010-11, India has consistently produced surplus sugar, comfortably exceeding the domestic requirements.
Sugar futures rise
The International Sugar Organization (ISO) in its March Market report said sugar futures rose in early March in the line with the higher commodity prices, especially oil and wheat due to the conflict in Ukraine.
In the second half of the month, markets remained volatile, with white sugar outperforming the raw sugar market, while better production prospects weaken the price outlook.
India’s sugar exports witnessed a growth of 291 per cent from $1,18 billion in 2013-14 fiscal to $4,6 billion in 2021-22. India exported sugar to 121 countries across the globe.
Sugar export jumped 65 per cent in 2021-22 compared with the previous year. The growth was achieved despite logistical challenges posed by the Covid-19 pandemic in the form of high freight rates, container shortages, etc.