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Bombay HC to hear sugar mills' quota extension plea next week

Food Ministry has justified its stance in its response by saying that the stock limit levy was necessary to put a curb on rising sugar prices

Dilip Kumar Jha  |  Mumbai 

After bitter season, sugar mills hit sweet spot

The Bombay High Court (HC) on Tuesday adjourned till October 24 the hearing of a case filed by seeking extension of three months to adhere to the Centre’s stock quota limit.

Hearing the case last week, the HC had ordered the Centre to file its response by Tuesday, which the government did. According to sources, the justified its stance by saying the stock limit levy was necessary to put a curb on rising prices despite adequate supply.


The had on September 8 directed to reduce its stock to 37 per cent of the stock available with them during 2015-16 before September 30, and 24 per cent by October 31. Of the nearly 200 that started crushing during 2015-16 in Maharashtra, 46 failed to adhere to the Centre’s guidelines.

argued that they were required to offload around 1.2 million tonnes into the market during a short period of 22 days as the government order came on September 8. “It was difficult to find buyers for such a large quantity of sugar. Hence, sought an extension,” said Sanjiv Babar, managing director, Maharashtra State Federation of Co-operative Factories.

The quantity required to be released constitutes double the average monthly consumption of in Maharashtra.

Sources, however, said in the state approached the for an extension before filing a case in the Bombay HC. The ministry had denied this claim. “The major objective of the ministry’s order was to cool down prices, which the government achieved as price fell sharply in the last few weeks. require some relief to protect their interest in terms of realisation,” said a senior industry official. posted huge losses due to a sharp decline in prices last year.

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Bombay HC to hear sugar mills' quota extension plea next week

Food Ministry has justified its stance in its response by saying that the stock limit levy was necessary to put a curb on rising sugar prices

Food Ministry has justified its stance in its response by saying that the stock limit levy was necessary to put a curb on rising sugar prices
The Bombay High Court (HC) on Tuesday adjourned till October 24 the hearing of a case filed by seeking extension of three months to adhere to the Centre’s stock quota limit.

Hearing the case last week, the HC had ordered the Centre to file its response by Tuesday, which the government did. According to sources, the justified its stance by saying the stock limit levy was necessary to put a curb on rising prices despite adequate supply.

The had on September 8 directed to reduce its stock to 37 per cent of the stock available with them during 2015-16 before September 30, and 24 per cent by October 31. Of the nearly 200 that started crushing during 2015-16 in Maharashtra, 46 failed to adhere to the Centre’s guidelines.

argued that they were required to offload around 1.2 million tonnes into the market during a short period of 22 days as the government order came on September 8. “It was difficult to find buyers for such a large quantity of sugar. Hence, sought an extension,” said Sanjiv Babar, managing director, Maharashtra State Federation of Co-operative Factories.

The quantity required to be released constitutes double the average monthly consumption of in Maharashtra.

Sources, however, said in the state approached the for an extension before filing a case in the Bombay HC. The ministry had denied this claim. “The major objective of the ministry’s order was to cool down prices, which the government achieved as price fell sharply in the last few weeks. require some relief to protect their interest in terms of realisation,” said a senior industry official. posted huge losses due to a sharp decline in prices last year.
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Business Standard
177 22

Bombay HC to hear sugar mills' quota extension plea next week

Food Ministry has justified its stance in its response by saying that the stock limit levy was necessary to put a curb on rising sugar prices

The Bombay High Court (HC) on Tuesday adjourned till October 24 the hearing of a case filed by seeking extension of three months to adhere to the Centre’s stock quota limit.

Hearing the case last week, the HC had ordered the Centre to file its response by Tuesday, which the government did. According to sources, the justified its stance by saying the stock limit levy was necessary to put a curb on rising prices despite adequate supply.

The had on September 8 directed to reduce its stock to 37 per cent of the stock available with them during 2015-16 before September 30, and 24 per cent by October 31. Of the nearly 200 that started crushing during 2015-16 in Maharashtra, 46 failed to adhere to the Centre’s guidelines.

argued that they were required to offload around 1.2 million tonnes into the market during a short period of 22 days as the government order came on September 8. “It was difficult to find buyers for such a large quantity of sugar. Hence, sought an extension,” said Sanjiv Babar, managing director, Maharashtra State Federation of Co-operative Factories.

The quantity required to be released constitutes double the average monthly consumption of in Maharashtra.

Sources, however, said in the state approached the for an extension before filing a case in the Bombay HC. The ministry had denied this claim. “The major objective of the ministry’s order was to cool down prices, which the government achieved as price fell sharply in the last few weeks. require some relief to protect their interest in terms of realisation,” said a senior industry official. posted huge losses due to a sharp decline in prices last year.

image
Business Standard
177 22