Government has released another 6 lakh tonnes of non-levy (free sale) sugar for April to June 2009 quarter. This is over and above 54 lakh tonnes of sugar already released for this quarter. This will bring the total free sale sugar availability in the market to 60 lakh tonnes for the months of April, May and June 2009, which is 10 lakh tonnes more than what was available during January to March 2009 and 8 lakh tonnes more than April to June last year. Thus, we expect there will be absolutely no shortage of sugar in the market.
In order to ensure continuous flow of sugar in the market, the monthly release orders for non-levy sugar have been further broken down into weekly releases. Sugar mills have been instructed to strictly comply with the release orders, failing which the balance unsold quantity will be converted into levy sugar and sold through the Public Distribution System(PDS).
Government is keeping a close watch on actual sales by sugar mills which are now required to report their sales, including the details of parties to whom sugar has been sold.
Government is also contemplating a continual and vigorous checking of stocks of sugar mills to ensure compliance with release orders and smooth supply of sugar to the market.
To ensure that unscrupulous elements do not impede fair trade by hoarding, etc., Government has also imposed stock-holding and turnover limits for sugar trade vide notification dated 12.03.2009. State Governments have been advised to strictly enforce these limits and take stern action against hoarders under the Essential Commodities Act, 1955.
There has been a shortfall in production of sugarcane and resultant production of sugar this year as compared to 2007-08. The Central Government has, therefore, taken steps to enhance supply of sugar in the current season by augmenting domestic availability through imports in the following manner:
a) Sugar mills have been allowed to import raw sugar under Advance Authorization Scheme upto 30.09.2009 and sell the processed sugar in the domestic market and fulfill the export obligation subsequently on ‘ton-to-ton’ basis.
b) Sugar mills have also been allowed to import raw sugar with zero import duty under OGL upto 01.08.2009.
c) The Central PSUs viz. STC, MMTC and PEC and NAFED have been authorized to import upto 10 lakh tonnes of white/refined sugar with zero import duty upto 1.8.2009.
Accelerated releases will be given to importers of raw sugar to enable early sale of sugar processed out of such raw sugar.
In order to facilitate imports, clearance of vessels importing sugar will be streamlined and these vessels be given priority in berthing at ports.
It is expected that imports will be adequate to supplement the domestic production and to cater to the consumption demand and there will be no shortage of sugar.
Source : www.webnewswire.com