The Hindu Business Line : Sugar hoarding

This is with reference to: "No Govt control over hoarding sugar" (Business Line, April 26). The story blames dealersfor hoarding of sugar in the absence of a licensing order. The stock limit for the dealers was in force at a time when sugar availability was uncertain so as to keep the price under check.

As the production of sugar stabilised, this licensing order was withdrawn allowing anyone to trade in and stock sugar. The Government also made open market releases to keep the price at reasonable levels.

Then it stopped issuing ration sugar to the high-income-group, and allowed more open market sale by mills.

The Sugar Release Order under the Essential Commodities Act clearly imposes the conditions that if sugar is not sold during the Release Order period it will get converted into levy and as the open market price was usually high, no mill would let the quantity allotted to it in the Release Order lapse.

With the offtake of sugar under the levy quota dropping, the mills , are getting more quantity , and are not perturbed if these stocks do not get sold during that period because the lapsed quantity, is revalidated to them for open market sale subsequently. The actual hoarding of sugar is done by the factories and not by the dealers. The general survey by the Civil Supplies Department can indicate the availability of sugar with the trade. If the Government really wants to check the rise in sugar prices, it should pull up the mills that are not adhering to the Release Order. Relaxation of the dealer licensing order has nothing to do with hoarding of sugar.

B. D. Mangal

Chennai

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