Date:27/07/2004 URL: http://www.thehindubusinessline.com/2004/07/27/stories/2004072700791200.htm

Back Govt cuts sugar FSQ for August

Our Bureau

New Delhi , July 26

PRECARIOUS stock levels in the face of a poor monsoon have seemingly forced the Government to adopt a conservative free-sale quota (FSQ) release policy for sugar.

Having earlier announced an FSQ of 12 lakh tonnes (lt) for August, the Directorate of Sugar has now revised the figure downwards to 10 lt. This is as against the month-wise allocations of 15 lt, 16 lt, 15 lt and 13 lt made for April, May, June and July, respectively.

Officials said that the lower revised allocation of 10 lt for August would not push up prices because there is adequate availability of sugar in the market. In fact, the Government had to only late last month extend the validity period for delivery and despatch of the FSQ of 15 lt released for June till July 15.

"Most large-scale consumers such as soft drinks manufacturers and confectioners have already stored up adequate quantities, which they purchased in earlier months. Unlike the earlier situation, there are no restrictions now on the quantity of sugar that traders can stock," they added.