Unsold Indian Sugar Converted to Levy Sugar

NEW DELHI - Mar 8/06 - SNS -- India's Directorate of Sugar has ordered conversion of 29,427 metric tons (MT) of unsold non-levy free sale sugar of 22 sugar mills of Uttar Pradesh and Uttaranchal into compulsory levy sugar.

There were reports that some sugar mills were releasing less quantity of free sale sugar which was lower than their monthly quota. This was resulting in less sugar availability in the market which in turn was resulting in hardening of sugar prices, particularly in Northern India.

After carrying out necessary inspections, the Directorate of Sugar has ordered conversion of the unsold non-levy sugar into levy sugar. Such inspections are being continued with a view to ensuring that sugar mills sell the entire monthly quota within the month itself. This would help in containing artificial and abnormal increase in sugar prices.

The Department of Food and Public Distribution has also promulgated notifications under the Sugar (Control) Order, 1966 under the Essential Commodities Act, 1955 for mandatory reporting of weekly sale of sugar by the sugar mills. The order in this regard has been notified in the official Gazette dated 28.2.2006. Failure to comply with the Order would render the sugar mills punishable under the Essential Commodities Act, 1955.