Govt gets excise brass to check compliance by sugar mills

New Delhi, Oct 26 (PTI) After pulling up millers for notcomplying with its order on the dismantled buffer stock, theFood Ministry has sought the help of Central Excise officialsto ascertain the quantity of non-levy sugar sold by millsduring September. The ministry has also asked the excise commissioners tosubmit reports by October 30, on the quantity of sugar soldfrom the buffer stocks. "They have been requested to send the requisite report byOctober 30, after verifying the records of the sugarfactories," the ministry has said in a letter dated October 16sent to Central Excise commissioners and chief commissioners. The move is aimed at putting a check on the activities oferrant millers and ensuring regulatory compliances. The government had created buffer stocks of 50,000,00tonnes in two tranches to bail out the sugar industry fromglut. It dismantled the first buffer stock of 20,00,000 tonnesin April and asked sugar factories to sell the sweetener bySeptember. In July, the government dismantled the second bufferstocks of 30,00,000 tonnes and asked the millers to sell 25per cent of it by September. The remaining 75 per cent of thestocks are required to be sold in the 2008-09 season. Sugarseason runs from October to September. But following non-compliance of its orders on submissionof details, the food ministry, on August 13, issued notices to252 mills, threatening to take action against them under theEssential Commodities Act, if they do not furnish monthlyreport on dismantled buffer stock of 20,00,000 tonnes for theMay-July period by August 25. In the first week of this month, the government had askedsugar mills to sell 75 per cent of the second buffer stocksaccording to a quarter-wise schedule. It had also said any unsold or undespatched stocks fromthe normal quota during a month and 30 per cent of theremaining 75 per cent of dismantled second buffer stock, whichis required to be sold or dispatched by the end of December,shall be converted into levy sugar. The ministry has also advised millers to sell at leastone-third of their monthly quota of non-levy sugar in thefirst fortnight of this month in a bid to avoid building up ofstocks towards the end. It has also decided to make available 52,00,000 tonnes ofnon-levy sugar for the quarter ending December, against42,00,000 tonnes in the year-ago period. Retail prices of sugar in the four metros were ruling inthe range of Rs 19-21 during the week ending October 17.PTI