Question : RELEASE OF SUGAR



(a) whether the Union Government propose to amend the existing monthly release policy for sugar industry;

(b) if so, the details thereof;

(c) whether sugar mills of Maharashtra have suggested some changes in existing policy;

(d) if so, the details thereof;

(e) the reaction of the Union Government thereto; and

(f) the measures adopted to liquidate surplus stocks of sugar lying in the mills of Maharashtra?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ( SHRI V. SREENIVASA PRASAD )

(a): At present, there is no proposal under consideration of the Government to amend the existing monthly release policy.

(b): Does not arise.

(c ): Government has received a memorandum from Maharashtra Rajya Sahakari Sakhar Karkhana Sangh on problems of Maharashtra`s sugar cooperative sugar mills. The said memorandum does not contain any suggestion on the release policy of the Government.

(d) & (e): Does not arise.

(f): In order to reduce the stocks of sugar laying with the sugar mills, Government has taken the following measures;


(i) Quantitative ceiling on export of sugar has been removed.

(ii) The sugar meant for export has been exempted from the levy obligation.

(iii) Duty Entitlement Pass Book (DEPB) @ 5% value of FOB price of sugar has been allowed.

(iv) Requirement of Registration-cum-Allocation certificate from APEDA has been dispensed w.e.f. 1.4.2001.

(v) The quantity of sugar exported is treated as advance freesale release to be adjusted after a period of 12 months from the date of release.

(vi) The advance releases of freesale sugar are being given to needy sugar mills.

(vii) The sugar factories have been provided temporary relief in lieu of their un-lifted levy sugar quotas by way of permitting them to sell equivalent quantity in the open marked.