‘Mills are selling sugar below MSP, fudging the records’

ST CORRESPONDENT
Friday, 22 March 2019

Speaking on the directives from the State, Sugar Commissioner Shekhar Gaikwad said no sugar mill would admit that they are selling sugar below MSP. “On paper all sugar mills are selling sugar at Rs 31 per kg. If we find mills selling below the MSP then we can take action against such mills. There can be a scenario where mills are selling sugar in a discounted price and are reporting government MSP on documents. We need to keep a watch on such mills,” added Gaikwad.

Pune: While the Centre has asked the sugar producing states to take action against sugar mills selling sugar below the prescribed minimum selling price (MSP) of Rs 31 per kg, the State Sugar Commissioner said it is difficult to keep a check on mills selling sugar below MSP. 

The minimum selling price (MSP) of sugar was recently revised to Rs 31 per kg from Rs 29 per kg by the Centre to generate liquidity which would help sugar mills pay the FRP arrears. The FRP arrears in Maharashtra are currently over Rs 4,900 crore.
 
Speaking on the directives from the State, Sugar Commissioner Shekhar Gaikwad said no sugar mill would admit that they are selling sugar below MSP. “On paper all sugar mills are selling sugar at Rs 31 per kg. If we find mills selling below the MSP then we can take action against such mills. There can be a scenario where mills are selling sugar in a discounted price and are reporting government MSP on documents. We need to keep a watch on such mills,” added Gaikwad.
 
He said Rs 31 MSP is excluding GST and other charges. “The other issue we are facing is that the mills sell sugar below MSP under the category of damaged sugar,” added Gaikwad. The Centre asked the states to look into the issue after it was found that mills are including GST, transportation price in MSP which was not correct, affecting the intention of the Centre for mills to get better revenue and cash flow by increased MSP. 

Currently the mills in the country have reported a glut in production and the sugar produced this season is 6 per cent more compared to last year as on March 15. There are 193 sugar mills operating in the State.

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