Higher Quota for January Sugar Allocation

The Indian government has allocated 2,25 million tonnes of sugar for sale in the open market during January 2025, an increase of 50,000 tonnes compared to the quota for December 2024. However, this is 50,000 tonnes less than the allocation for the same period last year. Industry sources have described this decision as appropriate, considering the current demand scenario.

In its notification, the Food Ministry stated that sugar mills which failed to sell their allocated quantities for October 2024 will not face penalties due to low demand during that period. Conversely, mills that sold more than their allotted quota have had their January quotas reduced. As many as 91 mills saw their quotas cut by a total of 175,000 tonnes, according to the notification.

State-Wise Quota of Sugar Allocation

The government has allocated sugar quotas across various states for January 2025. Maharashtra, Uttar Pradesh, and Karnataka received the largest allocations, with 0,818 million tonnes, 0,686 million tonnes, and 0,425 million tonnes, respectively. Smaller allocations have been made to other states:

• Gujarat: 67,490 tonnes
• Bihar: 47,972 tonnes
• Haryana: 42,011 tonnes
• Tamil Nadu: 34,534 tonnes
• Madhya Pradesh: 29,655 tonnes
• Punjab: 28,941 tonnes

An industry official remarked that while the allocation for January is suitable, mills had expected it to match December’s level. So far, the government has allocated 9,2 million tonnes of sugar for the first four months of the current sugar season, which runs from October to September.

Tighter Monitoring with GSTN Integration

Starting January 1, the government will link its online portal for sugar transactions with the GSTN database. This integration will allow authorities to quickly identify mismatches in sugar sales reported to both systems, ensuring better monitoring and compliance.

The government is also taking steps to address mills that repeatedly exceed their monthly quotas, despite penalties like reduced allocations. A senior official noted that the government is evaluating stricter measures to deter frequent violators and may take action when necessary.

Conclusion: A Balanced Allocation Strategy

The January sugar quota reflects a balanced approach, addressing both market demand and compliance concerns. The government’s efforts to enhance monitoring through GSTN integration and penalize quota violations aim to ensure a fair and transparent market. For mills, this allocation provides an opportunity to align sales strategies with regulatory requirements while meeting market needs.





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