Centre issues show-cause notices to 291 sugar mills

The government has issued show-cause notices to 291 sugar mills, both in the cooperative sector and private majors like Bajaj Hindusthan, Balrampur Chini and Shree Renuka Sugars, asking them to explain why action should not be taken against them for not furnishing sales data.

The notice, which was issued on April 30 by the Chief Director of Sugar in the food ministry, asked the defaulting mills to reply by May 4 “why action should not be taken against you for not furnishing the required statutory return”.

In September 2008, the food ministry had directed mills to furnish the information regarding sugar production, despatches (sales) and stocks on a weekly basis beginning October 1, 2008, to the Directorate of Sugar.

The show-cause notice further said that if the mills do not reply by May 4, it will be assumed that they have nothing to say in the matter and further action will be taken.

The Chief Director (Sugar) has also asked the Indian Sugar Mills Association and the National Federation of Cooperative Sugar Factories — the two leading industry bodies — to ensure submission of the statutory return latest by May 4 and also to ensure submission of weekly return in future.

The show-cause notice, issued even for mills which have failed to submit the return for one week since October 2008, comes in the wake of rising sugar prices, which have surged 40 per cent since October last year.

The country’s largest sugar producer, Bajaj Hindusthan, which has sugarcane crushing capacity of 136,000 tonnes crushed per day (TCD), has not submitted the return for 9 of its 10 plants and these units figure in the list of defaulters, as per the government data.

Its sister company, Bajaj Hindusthan Sugar and Industries, has also failed to file the return for all its four plants.

The Balrampur plant of Balrampur Chini Mills, the second largest sugar firm, had not furnished the data for all the weeks in October 2008. All 10 units of the company, which have a combined crushing capacity of 76,500 TCD, are in the list of defaulters.

Sree Renuka Sugars’ four plants have defaulted in filing the weekly return. The company, having a capacity of 40,000 TCD, owns five plants in Karnataka and run five more plants on lease.

Other factories which have received the notice include Triveni Engineering and Industries and Simbhaoli Sugars.

Comments could not be obtained from Bajaj Hindusthan and Triveni Engineering. Others were not available for comments.