The government has issued guidelines for compliance with the monthly stockholding limit orders. The directive states that non-compliance will result in repercussions, including cuts to domestic quotas, loss of export privileges, and potential reductions in ethanol procurement allocations.
In a communication to sugar mills, the Department of Food and Public Distribution (DFPD) stated that 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 above mentioned violation shall be increased for repeated violation by the groups/sugar mill, in the following manner:-
First Instance: 100% of the violated quantity will be deducted.
Second Instance: 115% of the violated quantity will be deducted.
Third Instance: 130% of the violated quantity will be deducted.
Fourth Instance and onwards: 150% of the violated quantity will be deducted.
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 sugar mill which haven’t provided correct HSN code wise details in Table-12 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 shall 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. These guidelines shall be strictly applied w.e.f October, 2025 onwards and January, 2025 monthly stockholding limit order will be issued on this basis,” the communication further added.
Sugar mills are directed to comply with the monthly Stockholding Limit orders in letter and spirit failing which the said action shall be taken against the non-complaint sugar mills.
