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

Notification Regarding Sugar Stockholding and Compliance for Sugar Mills

28-Feb-2025 | No. 5-4/2023-SC

Ministry of Consumer Affairs, Food And Public Distribution has issued a notification under the powers conferred by the Essential Commodities Act, 1955 and the Sugar (Control) Order, 1966. The notification directs all sugar producers using the vacuum pan process to hold their white/refined sugar stock until March 31, 2025. It was observed that some sugar mills violated stockholding limits by selling excess sugar in December 2024, leading to a deduction in their release quota for March 2025.

By virtue of the notice, sugar mills that violated the quota in December 2024 will have their excess sales deducted from their March 2025 release quota. However, those mills with lower sugar demand in December 2024 are exempted from penalties for unused quota. The integration of ERP/SAP systems of sugar mills with the NSWS portal is ongoing, and all mills must complete it by March 31, 2025. They are also required to submit monthly P-II forms by March 20, 2025. Sugar producing companies with multiple units can maintain stock either unit-wise or as a group. The notification also specifies the maximum quantity of sugar each mill can sell in March 2025, based on stock levels as of February 28, 2025. Furthermore, sugar mills must comply with the Jute Packaging Material Act, ensuring 20% of sugar is packaged in jute bags, and report the same through the NSWS portal. Non-compliance with these directives will lead to penalties under the Essential Commodities Act, 1955.

Please refer the attached documents for more information.

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