Govt. issues sugarmill-wise stock holding limit order for March, 2019

Speed Post News Network

New Delhi : The Central Government with a view to managing the situation of surplus production in the country and to stabilise the sugar prices to clear cane price arrears of farmers has been  implementing the Sugar Price (Control) Order, 2018, along with imposition of stock holding limits on sugar mills.

In exercise of powers conferred by section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966, and order of the Government of India dated June 7, 2018, the Central Government has been issuing stock holding order for every month since June, 2018, inter-alia, indicating therein the mill-wise quantity of white/ refined sugar prescribed for domestic sale/despatch for that particular month.

In the monthly stock holding limit order for the month of March 2019 issued on February 28, 2019, 24.5 LMT of white/refined sugar has been prescribed for domestic sale/dispatch. This increase is attributable to various factors. There is a pattern of high sales/dispatches around this time of the year. During February, 2018 sales/dispatch of sugar were at 23.54 LMT. Besides, sugar industry has recently been advised to go for advance booking of sugar sales to bulk consumers. It may be mentioned here that the Government has only recently increased the minimum selling price of sugar (MSP) from Rs 29 to Rs 31 /kg to provide an opportunity to mills to realise maximum revenue from sales at enhanced MSP to improve their liquidity to clear cane price arrears of farmers.

With the Sugar Price (Control) Order, 2018, being in vogue, sugar mills cannot sell their sugar at ex-mill price which is below MSP and any violation of the same would attract severe penal action under the provisions of the Essential Commodities Act, 1955. Hence, any apprehension about excess allocation of sugar for domestic sale under the stock holding limit order for the month of March, 2019 is unwarranted, according to a PIB release.