Sugar News Details

Sugar mill moves Gujarat HC over sales quota

29-May-2019

AHMEDABAD: A sugar mill from Vadodara has approached the Gujarat high court challenging the Centre’s decision to fix sugar sales quota and for permission to sell the sweetener so that it can pay dues to sugar cane farmers.
In response to the petition filed by the Vadodara District Cooperative Sugar Cane Growers Union Ltd, the high court issued a notice to the central government and the director of sugar earlier this month. On Monday, the Centre’s counsel appeared before the court, but the hearing on the issue was adjourned to June 6, said petitioner union’s advocate B S Patel.
The advocate for the petitioner submitted that the Centre’s policy of fixing quota for the sugar mills on sales is resulting in financial distress on cane growers, as the mill cannot make payments to the farmers for their produce in time because it cannot sell its free sugar stocks. If the mill is permitted to sell free sugar, it can earn money and pay the farmers who have been waiting for their payments since they deposited cane with the mill.
It was also submitted that the quota policy for sugar sales is causing financial loss to the sugar mill. It has taken credit on sugar stock, but restrictions on sales is delaying payment to banks and interest on the loan keep on mounting.
The central government has been fixing sugar quota for mills since June 2018. The government has also implemented the Sugar Price (Control) Order, 2018 to manage surplus sugar production in the country.

Source:  timesofindia.indiatimes.com