*Govt may cap Sep sugar sales quota at 2.2 mln tn*
NEW DELHI – Total sugar available for sale in September will likely be capped at 2.2 mln tn, marginally higher than the level in August, two senior government officials told sources.
The government has been fixing the maximum quantity of sugar available for sale on a monthly basis to support prices and help mills clear cane arrears.
EXCLUSIVE
"Quota has been set higher because demand for major festivals will kick in from next month and consumption is expected to rise," one of the officials said.
India consumed about 24.3 mln tn of sugar in 2019-20 (Oct-Sep), based on the monthly sales quota set by the government. However, the consumption was lower than the industry's estimate of 25.0-25.5 mln tn.
In 2020-21, India's annual domestic sugar sales are seen at 26 mln tn, translating to a little over 2.16 mln tn a month.
The Indian Sugar Mills Association pegged sugar production for the 2021-22 season at 31.0 mln tn, and output for the 2020-21 season is seen at 30.9 mln tn. End
