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Legal Central Ministry of Consumer Affairs, Food and Public Distribution Essential Commodities Act, 1955

Directorate of Sugar and vegetable oils has issued a Notification regarding the imposition of monthly stock holding limits on sugar mills and filling of correct data in the NSWS portal

14-Feb-2024 | F. No. 10-1/(2023)-NSWSPortal (382947)

Directorate of Sugar and vegetable oils has issued a Notification regarding the imposition of monthly stock holding limits on sugar mills to stabilize sugar prices in the Country. Deviation from these limits could disrupt the domestic sugar market and hinder government initiatives for the sugar industry.

By virtue of the Notification, the sugar factories are required to strictly comply with the following guidelines:
a. A monthly stock holding limit order must be strictly adhered to by all sugar producers in order for their products to be sold on the domestic market. It is anticipated that every sugar factory will sell a minimum of 90% of its monthly Release limit.
b. Selling more sugar than the monthly release quota will be deemed a breach of the Sugar (Control) Order, 1966 and the Essential Commodities Act of 1955, with enterprises that do not complying facing harsh penalties.
c. It has been agreed that the difference between the amount assigned and the quantity sold would be deducted from the release quota of the subsequent month in the event that a manufacturer is unable to sell up to 90% of the monthly release quota.
d. In accordance with GSTR1, all sugar factories are requested to provide accurate sales and dispatch data on the NSWS portal. Strict measures will be implemented for inaccurate data about sugar and ethanol on the NSWS site.

Please refer to the attached document for more details.

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