The government has taken stern action against sugar mills for violating stockholding limit orders and selling in excess of their release quota. As a result, the quota for around 160 sugar mills for August 2024 has been reduced.
In an order issued on July 31 by the Department of Food and Public Distribution allocating 22 lakh tonnes (lt) of sugar among 573 mills for sales in the domestic market during August, 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 May, 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 August-2024 as per the methodology:- (i) The excess quantity of sugar sold during May-2024, is deducted from release quota of August 2024. (ii) Sugar mills which dispatched less than 90% of quota for May-2024 without intimation, the release quota upto the extent of utilization of quota in the May-2024, is allowed in August- 2024.”
Monthly sugar quota of 22 lakh metric tonnes for August 2024, is less than the quantity allocated in August 2023 (25.5 LMT= 23.5 LMT + 2 LMT additional).
Additionally, the validity of the sugar sales under the monthly quota for July 2024 has been extended to August 15, 2024. In July 2024, the allocated sugar quota for domestic sale was 24 LMT.
The sugar-mill wise maximum quantity of white/refined sugar for domestic sale and dispatch during the month of August, 2024 as given in order, has been worked out on the basis of notional Stock as on 31.07.2024 (i.e. Closing stock as on 30-06-2024 minus (-) release for the month of July, 2024).
DFPD asked all sugar mills to register and fill online P-Il on National Single Window System (NSWS) portal (https:/Awww.nsws.gov.in). If the sugar mill does not fill online information on NSWS portal for the month of July, 2024 by 15th August, 2024, domestic quota for September, 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.
Sugar mills have also been directed to ensure the compliance of mandatory packaging of 20% of sugar in jute bags under Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987and submit the information thereof in P-II proforma on NSWS portal.
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