Date:29/12/2006 URL: http://www.thehindubusinessline.com/2006/12/29/stories/2006122903131100.htm

Back Jan-March sugar sale quota unchanged

Our Bureau

New Delhi , Dec. 28

In a clear indication that sugar prices are no longer unduly engaging the Union Government's attention, the free sale quota (FSQ) for mills during January-March 2007 has been fixed at 41 lakh tonnes (lt), the same quantity that was released during the opening quarter of 2006.

For the month of January, the FSQ has been pegged at 13 lt, a marginal increase over the 12.50 lt of January 2006. In addition, 1.84 lt have been released as levy sugar for the public distribution system, which is a tad above the 1.83 lt allocated in January 2006.

"The virtually unchanged release reflects the new situation, where it is not rising prices (affecting consumers) that is bothering the Government. The boot has instead shifted to the other foot and now there is concern about falling ex-factory prices that will eventually impact the cane grower ahead of elections in Uttar Pradesh," industry sources pointed out.

Ex-mill rates in Maharashtra are now in the region of Rs 1,400 per quintal, while ruling at around Rs 1,600 per quintal in UP. Since last year, realisations have dipped by Rs 200-250 per quintal.