Centre asks sugar mills to use export quotas to improve liquidity

In view of huge carryover stock and estimation of excess production of sugar in the current sugar season 2018-19 (October-September) and in order to improve the liquidity of the sugar mills to facilitate them for clearance of cane price arrears of farmers,

The government has fixed export target of 5 million tonnes of sugar in current sugar season 2018-19 by allocating mill-wise minimum indicative export quotas (MIEQ). 

The Department of Food and Public Distribution is monitoring quarterly export targets of sugar mills to improve their liquidity position and facilitate clearance of farmers’ arrears, an official release stated on Friday

Sugar mills, however, have not been able to undertake export of sugar at a desired pace. Against a quota of 5 million tonnes, only about 2.46 lakh tonnes of sugar has been exported of total contracts of about 6 lakh tonnes in the first quarter of the season. The central government has taken a very serious view regarding non-compliance of the directives of the government by most of the sugar mills. It has once again advised mills to undertake export of sugar as per their allocated quantity of MIEQ failing which appropriate action would be initiated against the defaulting sugar mills. 

Further, as per the monthly stock holding limit order issued to the sugar mills, they are required to set their quarterly export targets and intimate the same to Department of Food and Public Distribution (DFPD). 

Fulfilment of the quarterly export target by the sugar mills is monitored by DFPD. In case, a sugar mill fails to achieve its quarterly sugar export target, the equivalent quantity of un-exported sugar during the quarter shall be deducted in three equal installments from the quantity of sugar to be allocated to them and the monthly stock holding limit for each month will be curtailed.