New Delhi, June 26: Sugar industry today said it will strictly adhere to the sugar release mechanism, and mills all over the country have no intention to move court for selling the commodity without release orders. "Mills are complying with the release mechanism now effectuated by the government under the Essential Commodities Act (ECA). Court cases in Karnataka and Uttaranchal are only continuation of the ongoing earlier cases and have no link with the amendment in the ECA", the industry said here.

A joint statement issued by the National Federation of Cooperative Sugar Factories and Indian Sugar Mills Association said factories in Karnataka have confirmed to the sugar directorate that they will comply with the release orders issued by the government.

In the case of Uttaranchal, food ministry has been asked to look into the grievances of the concerned mills and give releases on a reasonable basis.

The Centre has been regulating the supply of sugar for levy (ration shops) and open sale under the monthly mechanism wherein each mill is allocated a fixed quota which it can download in the market.

In the past one year, the mills have flouted the mechanism by selling additional sugar in the market over and above their monthly quota by getting sanction from courts.

However, with the ECA amendment, the release mechanism has been placed directly under the act and being under the Ninth Schedule of the Constitution it is non-justiciable in courts.

Those flouting the mechanism can be booked under law and their stocks can be seized by the government.

Bureau Report