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

Directorate of Sugar and Vegetable Oils provides methodology for calculation of monthly stock holding limit for Sugar Season 2022-23

26-Dec-2022 | F.No.6-1(2021)-SC

Directorate of Sugar and Vegetable Oils has issued a notification detailing the methodology for calculation of monthly stock holding limit for Sugar Season 2022-23.

With a view to maintain the demand supply position and to stabilize ex-mill prices of sugar and also to ensure sufficient availability for domestic consumption, monthly release quota for domestic sale by sugar mills is allocated to sugar mills on the basis of stocks held by them, export performance and diversion of sugar to ethanol.

In order to ensure that the monthly domestic release quota is evenly distributed among sugar mills across the country, following parameters will be taken into account for allocation of the maximum quantity of white/refined sugar to be sold by the sugar mills in the domestic market from the month of January 2023 onwards:
a. The Stock holding limit for a month will be worked out on the basis of giving 100% weightage to the month end notional stock of the preceding month.
b. Benefit on account of export would be given for sugar lifted on or after 1st November, 2022 by adding the quantity exported since 01.11.2022 to the notional stock.
c. Further, incentive in lieu of sugar sacrificed for producing ethanol would also be given to sugar mills. 100% incentive on sugar sacrificed for producing ethanol from 8-heavy molasses/sugarcane juice/sugar syrup/sugar will be given.

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