Mumbai: After media reports and complaints from some millers and industry bodies that several mills selling the sugar below MSP (Minimum Selling Price), the Centre has sought action against such sugar mills.
Food Ministry has asked cane commissioners to ensure that sugar mills do not sell sweetener at below the MSP, which has been increased recently to Rs 31 a kilogram from Rs 29.
In a letter issued to them on March 20, the food and public distribution department (DFPD) has said, “Sugar mills of your state may be advised to strictly adhere to directives of government regarding MSP of white/refined sugar and action may be taken for violation of Sugar Price Control Order, 2018.”
Maharashtra sugar commissioner Shekhar Gaikwad confirmed that the letter had been issued to the cane commissioners last week.
Earlier while speaking with ChiniMandi.com, Mr.Gaikwad told that he has called for a meeting of millers on 28th March 2019 to review the situation.
According to the media report, the National Federation of Cooperative Sugar Factories has written to its members regarding the strict compliance of MSP under Sugar Price (Control) Order 2018. Prakash Naiknavare, MD of the federation, has warned of initiating strict action against those who violate the law.
The sugar mills are suffering from financial scarcity and are in pressure to clear the pending cane arrears, which is more than Rs 20,000 crore.
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