Govt releases 6 lakh tonnes of additional sugar for Apr-June

The Centre today released six lakh tonnes of additional sugar for the April-June quarter of the 2009-10 fiscal, and will also ask sugar mills to report compliance of their sales on a fortnightly basis, in order to control rising sugar prices.

The Food Ministry today decided to release 2.5 lakh tonnes of sugar each for the month of April and May and one lakh tonne for June, the government said in a statement.

"In order to ensure continuous flow of sugar in the market, the monthly release order for non-levy sugar are being further broken down into weekly plus fortnightly releases," the government statement said.

When contacted, a senior official said the monthly release order mechanism will now be monitored on a weekly or fortnightly basis to ascertain how much quantity mills sell.

The government will also keep a close watch on sales by sugar mills and it will soon ask them to report their sales on a fortnightly basis, the official said.The mills will also be asked to disclose the trader or firms to whom sugar has been sold, he added.

"The government is also contemplating a continual and vigorous checking of stocks of sugar mills to ensure compliance with release order and smooth supply of sugar in the market," the statement said.

The Food Ministry said despite no shortfall of sugar, prices of the sweetener have been rising recently mainly on account of a 'perception of shortage'.

Last month, the government allocated 54 lakh tonnes of sugar for the April-June quarter, which is two lakh tonnes more than the corresponding period of the previous year.

After the additional release, the availability of non levy sugar for the month of April would now increase to 22 lakh tonnes from 19.5 lakh tonnes. In May, it will rise to 21 lakh tonnes and in June to 17 lakh tonnes.