INDIA: Government gives mills a week to sell non-levy sugar
Published: 03/12/2010, 3:36:26 PM
The government has partially relaxed norms for millers to sell non-levy sugar quota for March in the open market by giving them seven more days to sell the allocated quantity, according to Reuters.
The "validity period" for each week in the month is extended by seven days so mills can sell quota for week ending March 31 by April 7, Ministry of Consumer Affairs, Food and Public Distribution, said in an order dated March 10.
The government had earlier asked millers to sell a part of their monthly non-levy quota every week, failing which the unsold quantity will be converted into levy sugar and sold at subsidised rate through the public distribution system.
However, millers were struggling to sell sugar according to the new release mechanism, leading to a sharp drop in sugar prices. They were demanding relaxation in the rule to stabilize falling prices.