Unsold sugar buffer to be converted into levy

Written by Commodities Bureau | New Delhi, Oct 13 | Updated: Oct 14 2008, 05:34am hrs
Further tightening its noose around erring sugar mills, the central government Monday decided to covert into levy sugar (sugar sold through public distribution system) any unsold quantity that remains with the mills out of the dismantled second buffer stock. It has also asked mills to furnish details of their sale of buffer by 10 th of each month in a fixed format.

Earlier, this month, the government had directed mills to sell 75% of their dismantled second buffer stocks of 3.0 million tonnes in fixed schedule reversing its earlier order wherein mills could sell the dismantled stock in open market anytime during the coming season that starts in October.

Under the reversed order, sugar mills would have to sell 30% of the dismantled buffer in the first quarter (Oct-Dec), 20% in the second quarter (Jan-Mar), 30% in third quarter (Apr-June) and 20% in the Jul-Sep quarter.

The government also advised sugar mills to sell at least one-third of their monthly quota of non-levy sugar in the first fortnight of the month to avoid building up of stocks at the end of the month.