India: NFCSF seek more time to clear unsold quota as sugar sales hit due to COVID-19

Published 2021년 4월 5일

Tridge summary

The National Federation of Cooperative Sugar Factories (NFCSF) has appealed to the Indian government for an extension of the time required to clear unsold sugar quotas, citing reduced sales and cash flow issues due to the pandemic. The government sets a monthly sugar sale quota based on mill production figures. However, due to a slump in demand, half of the quota for cooperative sugar mills has gone unsold. This has led to a cash crunch, affecting cane payments to growers and other payments. The NFCSF has requested the government to reduce the sugar quota for the next month to avoid further difficulties in sales.

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Original content

The National Federation of Cooperative Sugar Factories (NFCSF) on Monday demanded that the government give more time to clear the unsold sugar quota as sales have been hit due to the pandemic. Mills are also finding it difficult to sell sugar at a government-fixed rate of Rs 31 per kg. They are facing fund crunch and not able to make cane payment to growers on time, it said. With slump in sugar demand, NFCSF urged the government to allocate lesser sugar quota for sale in the next month. For April, the government has fixed a record sugar sale quota of 22 lakh tonne.The government fixes sugar sale quota every month based on production figures of mills across the country so that all small and big mills can sell sugar. According to NFCSF President Jaiprakash Dandegaonkar, there has been reduced sugar sales by nearly 1 million tonne due to sluggish demand owing to the nationwide lockdown imposed in March last year, resulting in shutdown of all confectionery, soft drinks, chocolates, ...

Source: Financialexpress