The govt. of India has put more sugar for sale through PDSs and open market during the July-Sept quartet than it did in the in the
same period earlier. The total amount of sugar released for sale works out to about 5 million tonnes. The April-June period had also about the same amount of sugar for sale.
Official sources say the sugar factories would sell at least 25 percent of their quota in each month of the quarter. They could sell the remaining 25 percent as per their commercial calculations. The whole exercise of the quarterly sale of sugar has been undertaken in response to overproduction of sugar in 2011-12. so as to keep retail prices stable.
The govt. has decided to export about 3 million tonnes of sugar this year as sugar production is being estimated to count 26 million tonnes against the domestic demand of 22 million tonnes. However, various sugar associations have been campaigning for deregulation of the sugar sector as well as for abolishment of monthly release mechanism and levy obligation.