Financial Daily from THE HINDU group of publications
Monday, Jan 12, 2004
Financial Daily from THE HINDU group of publications Monday, Jan 12, 2004 |
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Agri-Biz & Commodities
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Sugar Industry & Economy - Exports & Imports `Diversion' of sugar to domestic market — Maharashtra told to take action against defaulting exporters Dhimant Bhatt
Mumbai , Jan. 11 THE Central Government has directed the Maharashtra Government to take immediate action against the defaulting sugar exporters and sugar co-operative mills under the Essential Commodities Act, 1955, on the alleged diversion of sugar meant for export to the domestic market, according to top sources. On Friday, the State Government issued an order to 11 district collectors and magistrates to submit their action report within 15 days. The districts include Ahmednagar, Nasik, Satara, Sangli, Kolhapur, Osmanabad, Hingoli, Nanded, Latur and Aurangabad. About 21 sugar co-operative mills had diverted their export quota to the domestic market. All the sugar mills involved in this practice could not furnish proof of having exported sugar, according to sources. During the July-December 2002 period, nearly one-lakh tonnes of sugar in the State were diverted to the domestic market, which are about 80 per cent of total exports of the sugar mills. It is learnt that the Government lost nearly Rs 10 crore by way of excise duty in this regard. Also, Maharashtra farmers had lost about Rs 40 crore due to price difference between the export price and domestic price. Sugar exporters during the review period had been allotted sugar at the rate of Rs 10,500 per tonne for export purpose; and, at the same time, domestic price of sugar was quoted around Rs 13,500 per tonne, leaving a sizable profit of Rs 2,500 per tonne. As a result of diversion, excise duty evasion works out to Rs 850 per tonne. Thus, the total difference works out to Rs 3,350 per tonne, sources said.
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