Sugar industry wants no restriction

NEW DELHI: The government and sugar mills have not yet sorted out the differences over the issue of raising the levy quota as the industry insists no restriction on open market sale. There will be another round of meeting next week, said Mr Samir Somaiy a, President, Indian Sugar Mills Association.

He said “the government told us about its concern on sugar availability during festive season, particularly in Diwali. We told that the policy should be such that the sugar production in future must meet the domestic demand.'' Asked whether the industry has agreed to supply more sugar under levy quota, he said there was no agreement, discussion was still continuing.

Under the levy quota system, all sugar mills are mandated to contribute 10 per cent of their production to the Centre at a rate fixed by the government. Mills complain that the levy sugar price is less than the cost of production. Levy sugar is distribut ed through ration shops at cheaper rates. Industry wants that there should be no restriction in selling the remaining quantity in the open market.

SOURCE: thehindubusinessline