Perhaps in a first-of-its-kind move, the state government may have to buy what it has seized.
Following a suggestion from the Bombay high court, the government may have to consider buying over 6,000 quintals of sugar — worth several hundred crores — it had seized last year alleging its illegal trade outside of Maharashtra.
In a bid to save sugar, the court asked the state department of food and civil supplies to consider buying it from traders and sell it in the market within the state.
“What purpose will perishable goods serve in godowns?” asked justice SC Dharmadhikari while hearing 200 petitions together.
Public prosecutor PA Pol sought a week’s time from the court to seek instructions from the food and civil supplies department.
Arguing for Patni Financial Services — sugar traders from Kolkata — advocates Rajendra Raghuvanshi and Rutuja Ambekar said that, by holding large quantity of sugar in their godowns, the government created an artificial scarcity of saccharin that led to a rise in the price.
However, while the traders say that the government should buy the sugar at market rate, the government has proposed selling it through ration shops. The government has seized the sugar alleging a violation of the Essential Commodities Act, 1955.
Some traders were granted relief by the sessions court but the government appealed against the decision. On the other hand, the traders who failed to get relief moved high court and urged for the quashing of the resolution of August 28, 2009, directing the disposal of the seized sugar in seven days.
Justice Dharmadhikari said that this could happen for other commodities like dal as well.“But for obvious reasons sugar is more precious,” he said.
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