The Hindu Business Line : Sept sugar quota may be hiked to 14 lakh tonnes

THE Union Government may announce higher free-sale sugar quota (FSQ) of 14 lakh tonnes for the next month as against 11 lakh tonnes released for September 2003, according to trade sources.

The Government had announced that it would release 38 lakh tonnes for the fourth quarter ( July, August and September) of the current sugar season (2003-2004) last June.

Of this, the Government has, so far, released a total of 24 lakh tonnes (13 lakh tonnes for July and 11 lakh tonnes for August) for first two months. Thus, they may release balance quota of 14 lakh tonnes for the next month, sources said.

``Looking at higher sugar prices, the Government may release higher quota. Also, festival demand will start from next week onwards. Prices may go down if the Government announces such higher quota.

``At present, stocks at the Vashi wholesale market are extremely limited as fresh inflows from mills were reduced due to the on-going strike,'' a trader said.

Current prices in the domestic market are ruling higher at Rs 1,640-1,685 per quintal for small grade (S-30) and Rs 1,680-1,734 per quintal for medium grade (M-30), he said.

The Government has released free sale sugar quota of 11 lakh tonnes for the current month that includes additional release of one lakh tonne, 10 per cent of regular quota.