Government temporarily suspends key provision regarding violation of sugar stockholding limit orders
The Indian government has suspended the rule requiring sugar mills to inform authorities by the 20th of the month if they dispatch less than 90% of their allocated quota. Mills dispatching below 90% will now automatically face proportionate future quota restrictions until further government orders.
The Union Ministry of Consumer Affairs, Food and Public Distribution has issued a notification temporarily suspending a regulatory provision regarding the violation of monthly Stockholding Limit Orders by sugar mills, regarding the intimation till the 20th day of the month for dispatching less than 90% of the allocated quota.
According to a communication issued to sugar mills by the Department of Food and Public Distribution (DFPD), the government has removed Point No. 2(iii) of the guidelines dated March 28, 2025, with immediate effect.
The suspended provision originally stated: “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 utilisation of quota in the reported month, shall only be allowed.”
Under the revised framework outlined in the notification, the condition regarding prior intimation has been eliminated. The updated directive states: “Accordingly, all sugar mills are informed that if any group/ individual sugar mill dispatches less than 90% of quota for a particular month, the release quota for the corresponding month will be restricted upto the percentage of utilisation of quota in the base month.”
Consequently, any sugar mill that dispatches less than 90% of its allocated domestic quota will now face a proportional restriction on its future release quota, irrespective of any intimation provided to the government.
The notification highlighted that this suspension will remain operative until further orders. The DFPD has clarified that all other provisions of the March 28, 2025, guidelines shall continue to remain in force. Sugar mills have been directed to take note of the change and ensure strict compliance with the Stockholding Limit Orders.
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Source : ChiniMandi
