One lakh quintal sugar,which was seized in September last year,was finally auctioned by the Department of Food and Civil Supplies (DFSC) at Seera village on Saturday. Most of the stock was moist because it was lying in a closed godown for months with no ventilation. The average revenue earned by the DFSC from the auction was Rs 31 crore. When the sugar was seized,its market value was pegged at Rs 34 crore. Around 150 bidders took part in the auction where 10,000 bags were sold at Rs 3,600 per quintal. But later,the prices revolved around Rs 3,000 and Rs 3,200 per quintal. The stock belonged to Moga dealer Khubi Ram Johri Mal. The auction is expected to bring down the prices of sugar. On Saturday,the markets opened with Rs 100 jump per quintal. In the wholesale market,the price of sugar was Rs 3,885 per quintal against Rs 3,785 on Friday. A rumour of cancellation of the auction had created panic,said retailers. In the retail market,however,sugar is still priced at Rs 40 a kg. "After the auction,the price of sugar is expected to come down by Rs 5 a kg. But all fingers are crossed at what price the sugar mills will offer after the auction, said Balwant Rai,owner of Maniram Balwant Rai Departmental Store in Ludhiana. Confirming the auction,Vinod Singla,DFSC East said,The security deposit from the bidders has been taken and lifting of the stock will be start after March 4.The revenue generated from the auction will be deposited in the government treasury and if government wins the legal battle,the money will be remain in its coffers or else it would have to be shared between companies and the government as per courts order.
