Mills selling extra sugar to be fined

Government will send show-cause notices and penalise companies that are found to be selling sugar in excess of the stipulated free sale quota, a senior government official said today.

"We have sent our teams to carry out investigations in western Uttar Pradesh. Reports from a few mills are still awaited and after compilation, notices will be sent," the official said.

Since the sugar industry is under the partial control of the government, it stipulates the quantum each mill can sell in the market every month.

"The reason for monthly release of sugar is to ensure that it is available throughout the year at reasonable prices to consumers, while at the same time maintaining the price at a steady level helps the industry," the official said.

The official said selling excess sugar is violative of the Sugar Control Order of 1966. Under clause 4 of the Order, no mill can sell, deliver, or dispose of sugar from bonded warehouses of the factory where it is produced, "except under and in accordance with a direction issued in writing by the central government."

Mills under the scanner are Bajaj Hindusthan, Triveni Engineering and Industries, Simbhaoli Sugar Mills, Dhampur Sugar, Mawana Sugars, Tikaula Sugar, Daya Sugar, and Shakumbari Sugar.

The official said mills have earlier challenged the order in the courts, citing cases of liquidity problems, to pay farmers, and sold more than the stipulated amount in the market.

However, no such court order has been secured in the recent past, he said.