Revised_methodology for the calculation of monthly stock holding limit for SS 2021-22

With a view to maintain the demand supply position and to stabilize ex-mill
prices of sugar and also to ensure sufficient availability of sugar, for domestic consumption
monthly release quota for domestic sale by sugar mills is allocated to sugar mills on the basis
of stocks held by them, export performance and diversion of sugar to ethanol, in exercise of
powers conferred by section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with
clause 4 and 5 of the Sugar (Control) Order, 1966 and Order of the Government of India,
Department of Food & Public Distribution vide S.O. No.2347 (E) dated 07.06.2018.
2. In order to ensure than the monthly release quota is evenly distributed among
mills/states across the country, few changes/modifications have been made for the
calculation of monthly stock holding limit from the month of October, 2021 onwards.
Following parameters will be taken into account for allocation of the maximum quantity of
white/refined sugar to be sold by the sugar mills in the domestic market for every month:-
a) The Stock holding limit for a month will be worked out on the basis of giving 100%
weightage to the month end notional stock of the preceding month. The notional
month-end stock for any month would be calculated on the basis of the previous
month end stock reported in P-II, further adding the sugar lifted from sugar mills
after 1st August, 2021 as per 4.3 Column of P-II and subtracting actual release of the
preceding month of the month for which stock holding limit is being issued. Benefit
on account of export would be given for sugar lifted beyond 1st August, 2021.
Further, incentive in lieu of sugar sacrificed for producing ethanol would also be
given to sugar mills. Currently, 50% incentive on sugar sacrificed is being given;
however, from monthly release quota for October, 2021 and onwards, 100%
incentive on sugar sacrificed for producing ethanol from B-heavy
molasses/sugarcane juice/sugar syrup/sugar will be given. Detailed example in this
regard for the month of October, 2021 is as under:-
i. The October, 2021 Stock holding limit will be worked out on the basis of
I 00% weightage to the month end notional stock for the month of September,
2021.
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11. The notional month-end stock for the month of September, 2021 will be
worked out on the basis of month end stock for August, 2021 ( as reported in
P-II), further adding the sugar lifted from sugar mills after 1st August, 2021
for export as per 4.3 Column of P-II and subtracting actual release for
September, 2021. Benefit on account of export would be given for sugar
lifted beyond 1st August, 2021.
111. Besides, incentive in lieu of sugar sacrificed for producing ethanol from Bheavy molasses/sugarcane juice/sugar syrup/sugar would be given
corresponding to the reported ethanol production for August, 2021. Currently,
50% incentive on sugar sacrificed is being given; however, from monthly
release quota for October, 2021 and onwards, 100% incentive on sugar
sacrificed for producing ethanol from B-heavy molasses/sugarcane
juice/sugar syrup/sugar will be given.