Sugar quota rise under fire

Cong leader alleges the move would favour hoarding.

An additional sugar quota of three lakh tonnes for June and an extended period for clearing this extra quota up to July 15 are likely to benefit hoarders to the tune of Rs 50 crore, alleged Kanhaiyalal Gidwani, president, Coordination Committee of Consumer Protection Cell of Maharashtra Pradesh Congress Committee.

The government allocated a normal quota of 13 lakh tonnes for June which was later revised at the eleventh hour on the last day to 16 lakh tonnes.

As a normal practice, the government announces quota for the following quarter which is revised as per the availability of sugar in the country. India's estimated sugar production this year stands at 27-28 million tonnes against 22 million tonnes last year.

In a letter addressed to Prime Minister Manmohan Singh and Union minister for food and consumer affairs with reference to order No. vvip/631, Gidwani demanded immediate action against the personnel in the department of sugar who have deliberately amended the decision of extending the period.

Normally, the timeline is extended towards the end of the quota period in case the allocated quantity is not cleared. But, in this case, the ministry itself announced the extended period in the beginning.

The letter further says that such a decision, of extending the date to a future month, without giving clear justifications and reasons from the industry, has never been taken by the department in its history.

"This sends out a clear indication of massive hoarding and a strong nexus between the department and a very powerful private sugar hoarders' lobby which has got the release order amended in its favour for financial gains," the letter adds.

Sugar is an essential commodity. Therefore, any such decision known even two hours before the real announcement would help a trader gain heavily, alleges Gidwani. Gidwani demanded a proper enquiry into the matter for the better health of the sugar sector.