States asked to take action against 5 defaulting sugar mills

To be penalised for not supplying 24,192 tonnes of sugar for PDS sale in Jammu and North Eastern states

Centre has asked state governments to take "penal action" against five defaulter sugar mills including Karnataka-based Vishwanath Sugars and Steel Industries for not supplying 24,192 tonnes of the sweetener for PDS sale in Jammu and North Eastern states.

At present, mills are required to supply annually 10 per cent of their total sugar production, called levy sugar, at lower rate to Centre for PDS sale. Non-compliance of this order is an offence under the Essential Commodities Act.

In a separate directive issued recently, the Directorate of Sugar under the Food Ministry has said:  Vishwanath Sugars and Steel Industries, Dnyanyogi Shri Shivakumar Swamiji Sugars Ltd, Vithal Sugar Mills, New Phaltan Sugar Works Ltd and Jaya Shree Sugar Mil Sugars Ltd -- have defaulted on supply of 24,192 tonnes of sugar for Public Distribution System (PDS).

It has directed the state governments to take "penal action on an urgent basis" against these defaulter sugar mills situated in Maharasthra, Karnataka and Bihar and "confiscate the levy stock for PDS distribution."

Vishwanath Sugars and Steel Industries has defaulted  on supply of 13,440 tonnes of sugar to the Food Corporation of India (FCI) during February and March this year for PDS sale in North Eastern states.

The other four mills have defaulted on supply of 2688 tonnes each to FCI during last month for PDS sale in Assam, Meghalaya and Jammu, the directive said.

Of five mills,  Vishwanath Sugars and Steel Industries and Dnyanyogi Shri Shivakumar Swamiji Sugars Ltd are operating in Karnataka, while Vithal Sugar Mills and New Phaltan Sugar Works Ltd operate in Maharashtra. Jaya Shree Sugar Mill Sugars Ltd is based in Bihar.

Mills are supplying levy sugar at present to the Centre at Rs 19 per kg but it is being sold at a subsidised rate of Rs 13.50 per kg in ration shops.

As much as 20-22 lakh tonnes of sugar is required every year to meet PDS demand, of which 17-18 lakh tonnes is sold.

Sugar production in the country is estimated at 24.5 million tonnes in 2012-13 marketing year (September-October), as against the annual demand of 22 million tonnes.