Excise dept to train guns on mills hoarding sugar

NEW DELHI: Worried that the unbridled sugar prices could turn into a bitter poll issue, the government has trained its guns on sugar mills to prevent hoarding. The Centre has asked the excise department to keep a vigil on sugar mills to ensure that there is no hoarding and timely release of stocks by them, a government official said.

In the normal course, the excise department focuses more on preventing evasion by units. But with sugar prices touching new peaks, field officials would now keep a check on payment of duties as well as stocks in the premises of these mills.

Indeed,to keep tabs on hoarding, excise officials have been asked to co-ordinate with sugar commissioners. Sugar factories can now expect visits from taxmen to verify stocks and books, as the government does not want to take any chances at this crucial juncture of general elections.

The move comes in the backdrop of certain sections in the government holding the view that mills may be withholding their stocks and not releasing them in time, thereby causing artificial shortage, the official said. Sugar prices in the domestic retail market are hovering around Rs 26-28 per kilogram and are expected to go up further.

The commodity���s price spiral has continued unabated even after the government recently allowed duty-free import of raw and ready-to-eat sugar, largely due to artificial shortage. India���s annual sugar consumption stands at about 23 million tonnes.

The Centre has also imposed stock-holding and turnover limits for sugar trade. It has also directed state governments to strictly enforce the stock limits announced last month and take stringent action against offenders under the Essential Commodities Act, 1955.

This is not the first time sugar mills have come under the scanner of the excise department. The Centre had asked department last October to undertake a similar exercise to prevent a festive-time price spiral in the commodity.