New Delhi, Aug. 29 -- The government on Friday announced the replacement of the monthly sugar quota system with a fortnightly mechanism from September, as it attempts to tighten its monitoring of supplies and direct mills to release their allocated stock in two tranches to prevent hoarding and artificial shortages amid the recent rise in prices. Under the new system, mills will have to sell at least 40% of their allocated sugar quota in the first week and release the remaining quantity in the following week. Sugar sold by mills will also have to be dispatched within seven days, a move aimed at preventing mills from withholding supplies after making sales, according to an expert. "The recent surge in ex factory sugar prices was driven by several mills releasing small quantities at one level and holding back for higher bids at the next. The new fortnightly quota with weekly sales targets will compel daily sales, curbing this tendency. It's an old playbook-last used in 2009-now revived," said G.K. Sood, chairman of KN Agri Ltd.Sood said he expected the government to allocate around 2.3 million tonnes of sugar under the fortnightly system, including about 200,000 tonnes that could come from imported sugar, he said. The allocation will be slightly higher than the 2.25 million tonnes the government allotted in August.htc...