Govt threatens legal action against sugar millers

The Industry Ministry's Office of Cane and Sugar Board is maintaining its stance on the allocation of 100,000 tonnes of sugar to the Commerce Ministry despite plans by millers to reclaim the sugar due to delays in distribution, says permanent industry secretary Witoon Simchokdee.

On March 11, the OCSB approved the Commerce Ministry's request for a special allocation of 100,000 tonnes of sugar to be distributed through 11 traders to relieve shortages and prevent a further spike in prices.

The approval came after retailers complained about their diminishing stocks and millers' reluctance to supply them.

Mr Witoon, who is also chairman of the OCSB, said the Commerce Ministry sent a letter to reaffirm its responsibility for handling the sugar, stating the reason for the delays in distribution was the political unrest during April and May.

An Industry Ministry source said Manas Sroyploy, director-general of the Commerce Ministry's Foreign Trade Department, said it will use a monopoly law against sugar millers unwilling to sell sugar to traders.

Mr Manas also threatened to seize export quotas and dissolve the Thai Sugar Millers Corp if they do not co-operate, the source said.

source: bangkokpost