With the high and excessive Monthly Release, Sugar Quota announced for the month of March 2019 at 24.5LMT which defeats the very purpose of the introduction of the system. The quota is at a high of 16.19% over the already increased quota of February 2019 which was 13.35% higher than January 2019.
According to marketmen, the excess quota is psychologically working in favor of some trading elements who are only aiding to keep prices depressed. In fact, they are ensuring purchases at an abysmally lower level from the millers and selling at higher margins in retail trade. In the process, consumers, as well as the production industry and farmers, are put to a great disadvantage. It has also come to the notice of the Federation of Maharashtra State Co-op Sugar Factories that some mills, particularly in the Private Sector, are selling sugar even below the announced MSP by the Government. This is harming mills for fair practices and is harming the interest of farmers to ensure their FRP is paid by millers.
Maharashtra State Co-op Sugar Factories Federation has requested the DFPD to extend the quota up to 15 days of April and also the combined quota for March and April 2019 may not be allowed to exceed 35 lakh tonnes i.e. 17.5LMT on a proportionate basis for March & April 2019.
The Federation has also requested the Government to undertake mill-wise checks and verification to identify such mills which are selling sugar stocks below MSP and initiate strong action against those mills by abstaining them to be eligible for schemes introduced by the DFPD for bailing out sugar industry in SS 2017-18 and SS 2018-19 including those for sugar per se and ethanol as well.