Government to introduce fortnightly sugar allocation system to monitor demand-supply
The Indian government will implement a fortnightly sugar allocation system starting September, replacing the current monthly quota. This change aims to improve monitoring of the demand-supply situation, prevent artificial shortages, and ensure prompt dispatch of sold sugar. The decision was prompted by findings that many mills held more stock than declared and sold less than allocated. Under the new system, mills must sell at least 40% of their allocation in the first week and the remainder in the second, with crushing set to commence on October 15.
Key Points
- The Centre will replace the monthly sugar quota system with a fortnightly allocation system starting September.
- The new system aims to closely monitor demand-supply, prevent artificial shortages, and ensure timely sugar dispatch.
- The decision was influenced by mills holding undeclared stocks and selling less than allocated quotas.
- Mills will be required to sell at least 40% of their allocation in the first week and the balance in the subsequent week.
- Sugar crushing operations are scheduled to begin on October 15, with significant production expected in October and November.
Exam Facts
- New system start: September.
- Allocation rule: 40% in first week, balance in second.
- Crushing commencement: October 15.
- Expected production: 10 lakh tonne in October, 45 lakh tonne in November.
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