Question : LEVY SUGAR



(a) whether large quantity of levy sugar has accumulated with the sugar mill;

(b) if so, the total unlifted sugar stocks with the mills as on March 1, 2003;

(c) whether this has come in the way of the mills clearing the sugarcane growers dues;

(d) whether the mills have sought permission to sell out these stocks in open market even at prices below the levy sugar rates; and

(e) if so, the details in this regard and the Government response thereto?

Answer given by the minister

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

(a)&(b): As per reports received from some sugar factories, the levy sugar is not being lifted by the States/UTs/FCI/Agencies nominated by them. As on 1.3.2003, a quantity of 3.32 lakh M.Ts of levy sugar remained unlifted as per the reports received from the sugar factories during the season 2002-2003 (1.10.2002 to 28.2.2003).

(c),(d)&(e): Non-lifting of levy sugar had resulted in accumulation of huge stocks of sugar with the sugar factories and also affected their financial position. Keeping this in view, the sugar factories have been provided temporary relief by way of permitting them to sell equivalent quantity of unlifted levy sugar stock in the open market at rates deemed appropriate by them.