The centre has increased the levy obligation on sugar factories from 10 per cent to 20 per cent of production for 2009-10 sugar season. The levy obligation is imposed in terms of percentage of production.
During consultations with sugar industry, the Indian Sugar Mills Association (ISMA) and National Federation of Cooperative Sugar Factories (NFCSF), the apex organisations of private and cooperative sugar factories, respectively, requested to remove restrictions on sale of non-levy sugar, which the government has imposed in terms of regulated release mechanism policy. The government has not acceded to the request of the industry, minister of state for agriculture, consumer affairs, food and public distribution KV Thomas informed the Rajya Sabha in a written reply.
The government has also allocated 30 lakh tonnes of wheat and 10 lakh tonnes of rice for sale under the open market sale scheme (domestic), the minister said in reply to another question.
He said the government has allocated 10 lakh tonnes of wheat and 5 lakh tonnes of rice to state/UT governments for distribution to retail consumers/small processors during October 2009 to December 2009. Another 5 lakh tonnes of wheat has also been allocated for sale to bulk consumers in various states/UTs through open tenders by FCI during October 2009-December 2009.