4 sugar mills in dock for quota violation

The food ministry sent show-cause notice to four sugar mills earlier this week after they were found to have sold sugar in excess of the free sale quota (FSQ) given to them.

"We have sent notice to four sugar mills of western Uttar Pradesh, as they have violated the Sugar Control Order by selling excess sugar. We have given them three weeks' time to respond," informed a senior official of the ministry. He, however, refused to disclose the names of these mills and the groups to which they belong.

According to the Sugar Control Order, mills are required to surrender 10 per cent of the sugar produced by them as levy for the public distribution system (PDS).

The remaining 90 per cent free sale sugar can be sold in the open market, but even here, it is the Directorate of Sugar (on behalf of the government) that allocates the quantity to be sold every month.

Accordingly, mills are given a monthly FSQ, beyond which they cannot sell in the open market. In October, the ministry had sent teams to inspect the physical stocks held by all the mills in western UP after there were reports of excess selling by certain mills.

The purpose was to find out the discrepancies between the stocks held and the information on stocks submitted to the Directorate of Sugar.

Mills belonging to sugar majors, such as Bajaj Hindusthan, Triveni Engineering & Industries, Simbhaoli Sugar Mills, Dhampur Sugar, among others, were inspected.

The ministry has also decided to conduct random inspection on the mills on a regular basis so that they don't indulge in such practices in the future.