02 May 2022, New Delhi: The Centre has allocated 22.5 lakh tonnes (lt) as the monthly sugar quota for May, up 0.5 lt 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 stockholding limit has been worked out on the basis of giving 100 per cent weightage 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 (2022), sugar mills across the country have produced 329.91 lt of sugar, 38.09 lt higher than the 291.82 lt produced during the same period a year ago, as per 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 domestic requirements. The International Sugar Organization (ISO) in its March Market report said sugar futures rose in early March in line with higher commodity prices, especially oil and wheat due to the conflict in Ukraine.
India’s sugar exports witnessed a growth of 291 per cent from $1.18 billion in FY14 to $4.6 billion in FY22. India exported sugar to 121 countries across the globe.