Govt may convert 42 errant sugar mill's stocks into levy

New Delhi (PTI): The Food Ministry is seriously considering taking action against 42 sugar mills that have not replied to the show cause notice issued last month.

On August 13, the food ministry had issued notices to 252 sugar mills, threatening to take action against them under the Essential Commodities Act, if they do not submit monthly returns on release of 20 lakh tons of buffer stock for the period between May-July by August 25.

Out of 252 mills issued notice, there are at least 42 mills which have not replied and hence action needs to be taken against them, a senior official said, adding that the stocks of these mills could be converted into levy sugar.

Industry sources said among those who have not responded to the notice, majority of the mills are from Uttar Pradesh while Maharashtra has about 10 errant mills.

The millers were told to file returns by July 31, on the quantity sold during May-June from the buffer stocks. They were also ordered to report by August 10 on the quantity they sold in July. They were allowed to sell 20 lakh tons of buffer stock in the domestic market during May-September without seeking the monthly release order.

Of the total 50 lakh tons of buffer stocks of sugar created last year, 20 lakh tons was released in April 2008 and the remaining 30 lakh tons in July.

Meanwhile, the government has also asked mills to complete the sale of 27.5 lakh tons of dismantled buffer stocks of sugar by this month-end and warned that unsold quantity would be converted into levy.

source:hindu