The Ministry of Consumer Affairs, Food and Public Distribution has issued stringent guidelines to ensure compliance with monthly stockholding limits for sugar mills, following repeated violations by certain groups and individual mills. The new measures, effective from April 1, 2025, aim to enforce stricter penalties for non-compliance.
In a communication to sugar mills, Department of Food and Public Distribution said, “Analysis of GST data during last few months revealed that some of the groups sugar mills as well as individual sugar mills are repeatedly violating the stockholding limits orders despite repeated directions and deduction from domestic release quota. Also, some group/sugar mills had not filed HSN code-wise details in Table-12 of GSTR1.”
The government has decided to take action against the violators to ensure compliance.
If any group/individual sugar mill violates the stockholding limit orders and dispatch more than the prescribed release quota for a particular month, the excess quantity of sugar sold shall be deducted from release quota of subsequent month.
The deduction on account of violation will be increased for repeated violation by the groups/sugar mill in the following manner:-
According to the communication, if any group/individual sugar mill dispatch less than 90% of quota for a particular month without intimation till 20th day of the month, the release quota upto the percentage of utilization of quota in the reported month, shall only be allowed. No domestic release quota of sugar may be allocated to the group/individual mill which haven’t correct HSN code wise details in Table-12 sugar provided of their monthly GSTR1.
If any sugar mill violates the stockholding limit orders more than two times in a sugar season, the request of the sugar mills will not be considered for any additional release even after the recommendations by the concerned Cane Commissioner.
No benefit under any scheme of DFPD and DSVO, including export quota, as & when issued, may be granted to the sugar mills which violates stockholding limit orders more than two times in a sugar season, starting from the month of third instance. The allocation of ethanol procured by OMCs may also be reduced in case of repeated violation of stockholding limit by the sugar mills. The quantity so deducted shall be distributed among the other compliant group/individual sugar mills while issuing the monthly stockholding orders.
Sugar mills have been directed to comply with the monthly Stockholding Limit orders in letter and spirit failing which action will be taken against the non-complaint mills.
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