Penalty for Mills Exceeding Monthly Sugar Sale Quota

04-Dec-2025 11:32 AM

New Delhi. The Sugar and Vegetable Oil Directorate of the Union Ministry of Food, Consumer Affairs and Public Distribution has sent a letter to the Chief Executive Officers/Managing Directors of sugar mills across the country, warning them that if sugar is sold in excess of the government-prescribed free sale quota for any given month, the quota for the following month will be reduced.

This reduction will be further increased if a mill repeatedly sells excess sugar. A permanent rule (basis) for increasing the reduction has been established.

According to the Directorate, if a mill sells more sugar than the prescribed quota in a given month, its quota for the following month will be reduced by the same amount (the amount of sugar sold).

Similarly, if a mill sells more sugar than the prescribed quota for the second time, its quota will be reduced by 115 percent, for the third time by 130 percent, and for the fourth time by 150 percent.

This rule will be equally applicable to all units/groups found selling sugar in excess of the prescribed quota.

Similarly, if a sugar mill sells less than 90% of the prescribed quota in a month and does not inform the Directorate about it by the 20th of the next month, then no increase in its quota will be granted.

Similarly, if a unit does not provide details in accordance with the correct HSN code in Table 12 of its monthly GST R1, then the free sale quota of sugar for the next month cannot be issued to it.

If a mill violates the stock holding limit order twice in a single marketing season, then no additional quota will be issued to it.