New Delhi, Mar 5 (IANS): The Union Food Ministry on Tuesday said the sugar sale quota for March has been been increased to 24.5 lakh tonne (LT) for domestic sales and dispatches to help millers earn more and clear cane arrears.

Besides, the sugar industry has recently been advised to go for advance booking of sugar sales to bulk consumers, the Ministry said in a statement.

The quota was 23.54 lakh tonne in February.

The increase in the quantity of the stock to be sold in open market in March comes after the increase in the minimum selling price (MSP) from Rs 29 to Rs 31 per kg in mid-February.

The raise in quota is "to provide an opportunity to mills to realise maximum revenue from sales at enhanced MSP to improve their liquidity to clear cane price arrears of farmers", the statement said.

Sugar mills cannot sell their sugar at ex-mill prices which is below MSP and any violation of the same would attract severe penal action.

Total sugar production in the country is expected to be around 30.7 million tonne in 2018-19 as against 32.25 million tonne in 2017-18.