New Delhi: With sugar prices ruling high in the domestic market, the Centre on Friday released an additional six lakh tonnes of free-sale sugar for the April-June quarter. Coupled with earlier releases of 54 lakh tonnes, the availability of free-sale sugar for the quarter would be 60 lakh tonnes, as against 52 lakh tonnes in the corresponding year. At the same time, the government has asked public sector undertakings to import 10 lakh tonnes of white/refined sugar with zero import duty upto August. Import of raw sugar with zero import duty has also been allowed upto August.
There would be no levy obligation on such imported sugar.
Apart from this, sugar factories have been allowed to import raw sugar under advance authorization scheme up to September 30, sell the processed sugar in the domestic market and fulfill the export obligation subsequently on 'tonne-to-tonne' basis.
Retail sugar prices are hovering between Rs.26 and Rs.30 a kg compared to Rs.17 per kg a year ago and this has got the government worried. Prices shot up from Rs.25 per kg in the last fortnight.
- 60 Lakh tonnes available for the quarter.
- "Perception of shortage" in the market
The government maintains that though there is enough availability in the market, there is a "perception of shortage." Sugar production is expected to be significantly lower this year compared to last year because of lower sowing and vagaries of weather.
With the additional quota release, the availability of free-sale sugar in the domestic market for April would be 22 lakh tonnes, 21 lakh tonnes for May and 18.5 lakh tonnes for June.
Sugar Mills to comply
The Food Ministry has asked sugar mills to strictly comply with the release orders. The mills would now have to sell their quotas in the domestic market every week/fortnight, failing which the unsold sugar would be converted into levy sugar and sold through the Targetted Public Distribution System
Ministry sources said the government was keeping a close watch on actual sales by sugar mills. The would now have to report sales, including the details of parties to whom sugar is sold.
A continual and vigorous checking of stocks of sugar mills would also be done to ensure compliance with release orders and smooth supply of sugar to the market.
To prevent hoarding of sugar for speculation, the government has imposed stockholding and turnover limits for sugar trade. State Governments have been advised to strictly enforce these limits and take stern action against hoarders under the Essential Commodities Act, 1955.
-Gargi Parsai
(The Hindu: 18.4.2009)
