Govt gets excise brass to check compliance by sugar mills

New Delhi (PTI): After pulling up millers for not complying with its order on the dismantled buffer stock, the Food Ministry has sought the help of Central Excise officials to ascertain the quantity of non-levy sugar sold by mills during September.

The ministry has also asked the excise commissioners to submit reports by October 30, on the quantity of sugar sold from the buffer stocks.

"They have been requested to send the requisite report by October 30, after verifying the records of the sugar factories," the ministry has said in a letter dated October 16 sent to Central Excise commissioners and chief commissioners.

The move is aimed at putting a check on the activities of errant millers and ensuring regulatory compliances.

The government had created buffer stocks of 50,000,00 tonnes in two tranches to bail out the sugar industry from glut. It dismantled the first buffer stock of 20,00,000 tonnes in April and asked sugar factories to sell the sweetener by September.

In July, the government dismantled the second buffer stocks of 30,00,000 tonnes and asked the millers to sell 25 per cent of it by September. The remaining 75 per cent of the stocks are required to be sold in the 2008-09 season. Sugar season runs from October to September.

But following non-compliance of its orders on submission of details, the food ministry, on August 13, issued notices to 252 mills, threatening to take action against them under the Essential Commodities Act, if they do not furnish monthly report on dismantled buffer stock of 20,00,000 tonnes for the May-July period by August 25.

In the first week of this month, the government had asked sugar mills to sell 75 per cent of the second buffer stocks according to a quarter-wise schedule.
source:hindu