The government decided to release 19.20 lakh tonnes of sugar in the open market and through the public distribution system (PDS) in August, 2010, about 2.55 lakh tonnes more than in the current month.
Out of the total allocation for August, the Food Ministry has allocated 2.20 lakh tonnes of sugar for supply through ration shops (called levy sugar) and 17 lakh tonnes in the open market (known as non-levy sugar).
In July this year, the ministry had released 16.55 lakh tonnes of the sweetener. In comparison, in August, 2009, 18.55 lakh tonnes of sugar was released.
“This quantity of 19.20 lakh tonnes is sufficient to meet the internal demand of sugar for the month of August, 2010,” an official statement said.
The government specified that mills should sell the entire non-levy sugar quota of sugar during August.
The Food Ministry fixes the quantity of sugar to be released in the open market and ration shops every month.
The non-levy quota of 17 lakh tonnes for August includes 3.13 lakh tonnes of imported sugar.
The Centre had allowed duty-free imports of raw and refined sugar from February, 2009, to bridge the shortfall in availability of the sweetener and curb rising prices. The country has imported 6 million tonnes of sugar since last year.
Sugar prices have declined by about 30 per cent since mid-January and are ruling at Rs 32 a kg in the retail market of Delhi.
