Recently, the government had imposed a 25 percent deduction from the eligible quota for March 2024 for companies that had violated the sugar quota during November-December 2023. The Centre had also deducted the sugar quota for Ponni Sugars. However, today, the Director (Sugar) issued an order restoring 372 tonnes of sugar that were deducted in the earlier order dated 29-02-2024.
Ponni Sugars (Erode) Limited informed exchanges, “We refer our letter dated 04-03-2024 wherein we have informed that Director (Sugar), Directorate of Sugar & Vegetable Oils, Ministry of Consumer Affairs, Food & Public Distribution has issued order dated 29-02-2024 on monthly sugar release quota for March 2024, deducting 25% of eligible quota of our company. Based on representation made by our company, Director (Sugar) has issued order dated 12-03-2024 restoring the deducted sugar release quota for March 2024”
According to the company, the Director (Sugar) order dated 29-02-2024 stated that company violated sugar quota in November & December 2023 and imposed 25% deduction from eligible quota for March 2024. Considering our representation that sales during November & December 2023 were based on interim order of High Court of Madras in WP 705 of 2019, the deducted quantity has since been released.
“In the company’s view, there is no material impact on the financial, operational, or other activities of the company. Its representation was to impress that it committed no violation, which has since been accepted,” the company further added.
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