Government deducts sugar quota of around 134 mills for violating stockholding limits

The government has taken action against sugar mills for violating stockholding limit orders and selling in excess of their release quota. As a result, the quota for around 134 sugar mills for September 2024 has been reduced.

In an order issued on August 30 by the Department of Food and Public Distribution allocating 23.5 lakh tonnes (LMT) of sugar among 573 mills for sales in the domestic market during September, the Government said, “It has been observed that some of sugar mills have violated the stockholding limits and sold the sugar in excess to their release quota for the month of June, 2024. Therefore, in exercise of the powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966 and Order of the Government of India, Department of Food & Public Distribution vide S.O. No. 2347(E) dated 07.06.2018, it has been decided to deduct the release quota for the month of September-2024 as per the following methodology:- (i) The excess quantity of sugar sold during June-2024, is deducted from release quota of September-2024. (ii) Sugar mills which dispatched less than 90% of quota for June-2024 without intimation, the release quota for the month of September-2024 is restricted upto the percentage utilization of quota in the June-2024 by the mill.”

The monthly sugar quota of 23.5 LMT for September 2024, is lower than the quantity allocated in September 2023. For September 2023, the government had released a quota of 25 LMT

The sugar-mill wise maximum quantity of white/refined sugar for domestic sale and dispatch during the month of September, 2024 as given in column order, has been worked out on the basis of notional Stock as on 31.08.2024 (i.e. Closing stock as on 31.07.2024 minus (-) release for the month of August, 2024.

DFPD asked all sugar mills to register and fill online P-II on National Single Window System (NSWS) portal (https://www.nsws.gov.in). If the sugar mill does not fill online information on NSWS portal for the month of August, 2024 by 10th September, 2024, domestic quota for October, 2024 will not be released to the mills. All the sugar mills/distilleries are informed that information relating to ethanol production from B-Heavy, Sugar Syrup, Sugarcane Juice shall also be filled on NSWS portal in the P-II form itself. In addition, all sugar mills are requested to develop APIs to link their ERP systems to NSWS Portal so that P-II may be filed digitally and accurately.

DFPD also directed sugar mills to ensure the compliance of mandatory packaging of 20% of sugar in jute bags under Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987 and submit the information thereof in P-Il proforma on NSWs portal. Any violation of this order would attract the penal provisions under the Essential Commodities Act, 1955, as amended from time to time.

Click here to read the order


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