Mills selling sugar below MSP to face action; Maharashtra sugar commissioner calls for meeting

Kolhapur: After reports of mills selling sugar below the minimum selling price (MSP), now food ministry has come into action. Ministry has asked cane commissioners to ensure that sugar mills do not sell sweetener at below the MSP, which has been increased recently to Rs 31 a kilogram from Rs 29.

In a communication to the cane commissioners of sugar producing States, the Department of Food and Public Distribution (DFPD) said mills must follow the Sugar (Control) Order, 2018, which directs them to sell sugar at the MSP.

“It is clarified that the MSP of white/refined sugar fixed by the government is the ex-mill price of sugar and is exclusive of GST and transportation charges, and it is only a floor price below which no sugar mill can sell white/refined sugar at factory gate in the domestic market,” said DFPD to cane commissioners.

After receiving a letter from DFPD, Maharashtra sugar commissioner Shekhar Gaikwad called for a meeting.

Talking to ChiniMandi.com, Mr.Gaikwad said, “To discuss an issue, we have called the meeting of chairman and MD of sugar factories on 28th March 2019.”

Warning of stern action against mills selling sugar below the MSP, DFPD mentioned in the letter, “It is requested that the sugar mills of your state may be advised to strictly adhere to directives of government regarding MSP of white/refined sugar and action may be taken for violation of Sugar Price Control Order, 2018, if any sugar mill is found to be selling white/refined sugar below the MSP.”

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