Govt releases 18.86 lakh tonnes of sugar for March

NEW DELHI: The government has made 18.86 lakh tonnes of sugar available for sale through open market and ration shops for the month of March 2011, which is marginally more than the current month.

"This quantity of 18.86 lakh tonnes is sufficient to meet the internal demand of sugar for March," said an official release.

The government had released 18.39 lakh tonnes of the sweetener for February.

Of the total allocation for the month of March, 2.02 lakh tonnes of sugar will be for supply through ration shops and 16.84 lakh tonnes in the open market, the statement added.

The food ministry allocates the quantity of sugar to be released in the open market and ration shops every month and instructs the mills to sell the entire non-levy quota during the same month.

The validity period for sale of the non-levy sugar quota (both indigenous and processed raw sugar) released for the month of February, 2011 has been extended upto March 15, 2011.

National Federation of Cooperative Sugar Factories ( NFCSF) had asked the government for an extension of validity of February's non-levy sugar by 15 days and a judicious release of 10-11 lakh tonnes of sugar for March.

Sugar prices are showing a declining trend as the country's production is expected to outstrip demand at 24.5 million tonnes in the 2010-11 crop year (October-September).

The annual demand is seen at 22 million tonnes.