India has released 1.49 million tonnes of non-levy sugar for the month of July. It has also decided to announce the quota on monthly basis, scrapping earlier practice of announcing it on quarterly basis, the government informed.
Non-levy, or free sale sugar, is sold by millers in the open market, but the quantity each mill can sell is set by the Federal Government.
The government has released 1.267 million tonnes as normal non-levy sugar quota and plans supplies of 133,000 tonnes from dismantled buffer stock and 90,000 tonnes from imports, taking supplies to 1.49 million tonnes.
The government announced that it will release quota on monthly basis till suspension of futures trading in sugar remains in force. India`s commodities market regulator has banned the launch of new sugar futures contracts until the end of 2009.
The government said it may release additional non-levy sugar in the market if prices rise further. Traders predict a 45 percent fall in India`s sugar output to 14.7 million tonnes in the crop year to September.
The sugar output of India in 2009/10 is likely to reach 17.5-18.5 million tonnes, lower than the previously estimated 20 million tonnes, on delay in progress of monsoon, a senior industry official informed.
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Posted On : 01 Jul 09
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