Govt to act against mills violating release order

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| Minister of state for agriculture Akhilesh Prasad Singh, in a written reply, said showcause notices had been issued to four sugar factories on the basis of first round of inspection, while the reports of second round of inspection were yet to be examined. |
| "Appropriate action shall be taken against the sugar factories found violating the release orders of the government," he said. |
| Sugar factories are required to sell and despatch the specified quantity of sugar as allowed in the monthly release orders of the government. |
| However, some sugar mills have obtained orders from the courts to sell sugar over and above the quantity allowed in the release orders, Singh said. |
| To ascertain the situation, he said the central government decided to make random checks on sugar mills in Uttar Pradesh. |
| The government, so far, has inspected 30 sugar factories in the state belonging to different sugar companies in the first two rounds - 12 in the first round and 18 in the second in October and November 2006, respectively. |
| To a query whether the private sugar mills are also exploiting labourers working there, Singh said that whenever complaints are received about violation of labour laws, the state government concerned is asked to take suitable action in the matter. |
| Replying to another question, Singh said the information regarding alleged irregularities in excise including illegal sale of sugar and molasses is being collected by the Central Board of Excise and Customs from all over the country. |
| There is, however, no proposal to prepare a monthly report on sugar and molasses produced by each sugar mill on the basis of recovery and crushing of cane, he added. |
| Meanwhile, the government also said both subsidy and loans extended to sugar mills in 2005-06 came down sharply compared to the previous year. |
| The Central assistance in form of subsidy has been reduced by more than 60 per cent to Rs 96.37 crore in last fiscal from Rs 244.99 crore in 2004-05. |
| Loan to sugar mills also went down by nearly 43 per cent to Rs 123.14 crore in 2005-06 against Rs 214.84 crore a year earlier. |
First Published: Dec 19 2006 | 12:00 AM IST