The Monopoly Control Authority (MCA) has served notices on sugar mill owners under section 21 of the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance 1970, seeking requisite information. The copy of the notice provided to Business Recorder said all the mill owners should provide needed information within seven working days from the date of issuance of the notices. The notices, duly signed by the competent authority and issued on April 30, clearly cautioned the mill owners that in case of failure to supply the requisite information within the stipulated time, the Authority might initiate action under penal provisions of section 19 of the Ordinance.

The details, which have been sought from the mill owners included the annual report and audited accounts of the company for the year ended September 30, 2004 and provisional accounts for the period October 2004 to April 2005.

The mill owners are also required to submit actual production as on September 30, 2004 and crushing season October 2004 to April 2005, as well as production capacity of the company in tonnes during 2004 and 2005.

The notices also make it mandatory for the mill owners to submit capacity utilisation during September 2004 and October, 2004 to April, 2005, stating reasons of under utilisation, if any, and sales and cost of sales data as per proforma attached for September 30, 2004 and October, 2004 to April, 2005.

The mill owners are also required to submit price per tonne of sugar from October 1, 2004 to April, 30 2005, both in quantum and value; raw material used to manufacture sugar via cane, beet or import raw sugar; total quantity of sugarcane purchased/crushed yield per tonne; support price and actual price paid per tonne and total imports of raw sugar during September 30 to April 2005 both in quantum and value.

Its also mandatory for the mill owners to give information about starting date of crushing season in 2003 and 2004, and reasons of delay, if any, and total and month-wise quantity sold during September 30, 2004 to April, 2005.

The mill owners will also report about sugar stock as on September 30, 2003, September 2004 and April 30, 2005.

It is also mandatory for them to give names and address of their associated undertaking(s) stating: Nature of interest of associates in the company and line of their business; market share of the company, stating the total volume of sugar market taken as a base figure and marketing/distribution system, ie sale through dealers, stockists or associated undertakings. They will also furnish a copy of agreements entered into with dealers, stockists or associated undertaking, if any.

The served notice has two important notes: Note 1 asking the mill owners to indicate variable and fixed cost per tonne of sugar produced and Note 2 demanding their brief comments on overall reduction in sugar production, higher cost of production and increasing trend of sugar prices in the wholesale and retail market.

Copyright Business Recorder, 2005