GOVERNMENT OF INDIA
Ministry of Consumer Affairs, Food and Public Distribution

DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
RAJYASABHA
UNSTARRED QUESTION NO. 2508
TO BE ANSWERED ON 11 TH DECEMBER, 2009

Proposal To Double the Quantum of Sugar Levy

2508. SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state:
(a)     whether Government proposes to double the quantum of sugar levy from the present level of2.5
mt;
(b) if so, whether the industry has agreed to entertain such a move on the condition that Government would agree in return to remove restrictions on quantum of sugar that industry can release in market each month; and
(c)     if so, Government's response thereto?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(PROF. K.V. THOMAS)

(a); The levy obligation on sugar factories is imposed in terms of percentage on production. The Central Government has increased the levy obligation on sugar factories from 10% to 20% of production for 2009-1 0 sugar season.
(b)&(c); During consultations with sugar industry, the Indian Sugar Mills Association (ISMA) and National Federation of Cooperative Sugar Factories (NFCSF), the apex organizations 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.