Government deducts sugar quota of 106 mills for selling excess sugar

The government has cracked the whip on sugar mills for allegedly selling more quantity of the commodity. It has deducted the quota of around 106 sugar mills for July 2024.

In an order issued on June 28 by the Department of Food and Public Distribution allocating 24 lakh tonnes (lt) of sugar among 573 mills for sales in the domestic market during July, the Government said, “It has been observed that some of sugar mills have violated the stockholding limits and sold the sugar in excess to their release quota for the month of April, 2024. Therefore, in exercise of the powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966 and Order of the Government of India, Department of Food & Public Distribution vide S.O. No.2347 (E) dated 07-06-2018, it has been decided to deduct the quantity so dispatched in excess to release quota of April-2024, from eligible quota for the month of July-2024.”

Monthly sugar quota of 24 lakh metric tonnes for July 2024, is similar to quantity allocated in July 2023 (24 LMT).

DFPD has asked sugar mills to register and fill online P-II on National Single Window System (NSWS) portal ( If the sugar mill does not fill online information on NSWS portal for the month of June, 2024 by 10th July, 2024, domestic quota for August, 2024 will not be released to the mills. All the sugar mills/distilleries are informed that information relating to ethanol production from B- Heavy, Sugar Syrup, Sugarcane Juice shall also be filled on NSWS portal in the P-II form itself.

Sugar mills have been directed to ensure the compliance of mandatory packaging of 20% of sugar in jute bags under Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987and submit the information thereof in P-II proforma on NSWS portal.

In this regard, the chairman of a cooperative sugar mill in Kolhapur district, speaking on the condition of anonymity, stated that due to mismanagement and other reasons, some sugar mills in the country are facing a severe financial crisis. Consequently, these sugar mills sell sugar beyond the prescribed quota, which adversely affects other mills. Therefore, the government has reduced the quota of illegally sold sugar. As a result of this action by the central government, no sugar mill will dare to exceed the prescribed quota in the future.

Click here to read the order


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