The Department of Food and Public Distribution (DFPD) controls the monthly sale of sugar, by allocating a quota to every sugar mill as to how much sugar it can offloaded in the market during the said month. Cumulatively, it is known as the ‘monthly sugar sale quota’. The objective of this is to maintain a steady supply of sugar in the market, sufficient enough to cater to domestic demand. This also aims to check the distressed sale of sugar in the market, thereby maintaining that sugar is sold at or above the Minimum Selling Price of Rs.31/kilo set by the Government. Hence, the monthly sugar sale quota is a carefully thought policy of the Government designed to maintain sugar equilibrium in the country.
The quota was introduced at the request of the sugar mills, who had represented to the Government for the same. However, reports suggest that several sugar mills flout this quota, and sell more sugar than the quota allocated to them, which goes unreported in the system.
The Directorate of Sugar wants to tighten the loose screws. According to sources, come January 2024, the Directorate will have access to the GST data of each sugar mill to validate the sale of sugar as per the quota allocated. The data will be cross-checked to find any discrepancies.
The sources say that the process will start from January 2024, and to begin with, the December 2023 monthly sales quota will be scrutinized. The Government will take strict action against those who are found violating the sugar supply quota under the Essential Commodities Act. An official notification is awaited for the same.
