NEW DELHI: After five years, the government reintroduced the
sugar control norm specifying how much the mills can sell and dispatch for export every month. Recently, it fixed the maximum quantity for 528 mills for June.
A circular issued by the food ministry said, "Any violation of this order would attract the penal provisions under the
Essential Commodities Act,
1955."
In April 2013, the Centre had unshackled the
sugar industry by abolishing the monthly release mechanism and doing away with the mills' obligation to supply levy sugar, which was distributed under the
Public Distribution System.
Mills have claimed the new restriction will impact them adversely to serve the debt as they will have less ability to increase cash flow and pay debts including those of the farmers.
The government also fixed minimum selling price of sugar at factory gate and the creating a buffer stock. Sources said while these two moves are aimed at helping the industry to tide over the crisis of glut and crashing domestic prices, the restriction on monthly sell has been imposed to ensure there is balance in the market and prices don't go out of consumers' reach.
Representative image