Centre cracks whip on sugar mills on stocks
Ministry of Consumer Affairs writes to CEOs and MDS of sugar mills, cautioning them on deviation from monthly stock limits
image for illustrative purpose
New Delhi: The central government has admonished sugar mills to strictly comply with the monthly stock holding limits. The Ministry of Consumer Affairs, Food and Public Distribution recently wrote to the CEOs and managing directors of sugar mills, reminding them that the deviation from the monthly stock limits by sugar factories would distort the domestic sugar market, official sources told Bizz Buzz.
The Ministry wrote that this may also interrupt the steps taken by the government in the interest of the sugar industry. Monthly stock holding limits on sugar factories is imposed under the Sugar Price (Control) Order, 2018, and the Sugar (Control) Order, 1966, under the provisions of the Essential Commodities Act, 1955, with the objective of keeping sugar prices in the country stable.
The Ministry has directed the sugar factories to sell at least 90 per cent of their monthly release quota, cautioning them the sale of sugar quantity in excess of the monthly release quota will be considered as a violation of the provisions of the Essential Commodities Act and the Sugar (Control) Order, 1966. Strict action will be taken against the non-compliant factories, it added.
If a factory fails to sell the quantity up to 90 per cent of its monthly release quota, the difference in the quantity allocated and the quantity sold will be reduced from the release quota of the following month. For example, a mill which sells only 80MT out of the 100MT quota during a month, and its eligible quantity of quota in following month is 120 MT, its quota for the following month shall be restricted to 80 per cent of the eligible quantity, i.e. 96 MT only. Recurring violations of the monthly release quota may result in stoppage of monthly release quota as well.
All the sugar factories have been asked to provide the correct sales and dispatch data as per GSTR-1. Form GSTR-1 is a monthly/quarterly statement of outward supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
