Faced with low demand, many sugar mills have reported distress sales of sugar below government-declared minimum selling price (MSP) of Rs 3,100 per quintal. The Food and Public Distribution Department (DFPD) has taken a not of it and issued an advisory to sugar mills asking compliance of MSP for sale of sugar in the domestic market along with imposition of monthly stock holding limits on sugar mills.
In a letter, DFPD said, “Sale of sugar by sugar mills in the domestic market below MSP and in excess of monthly quota allocated to mill would dislodge the entire steps taken by the government for survival of sugar industry and may result in accumulation of cane price arrears of farmers.”
“State governments have also been requested to monitor the sale of sugar by mills in the domestic market and in case of any violation by mills, States have been directed to take necessary action against the defaulting mills under the provisions of Essential Commodities Act, 1995. All sugar mills are therefore, advised for strict compliance of monthly stock holding limit and MSP of sugar. In case it is found that any mill has not complied with these directions, the excess quantity sold by sugar mills along with some additional quantity as decided by Directorate would be deducted for monthly release quota from March 2021 onwards and further necessary action as deemed fit would also be taken against such sugar mills,” letter further added.