Strict action to be taken against sugar mills violating storage limits

New Delhi| The government will take strict action against sugar mills violating orders related to monthly storage limit. The Ministry of Food and Consumer Affairs has set monthly storage limit for white/refined sugar to prevent hoarding and control price rise. For April it is 23.5 million tones.

Some group and individual sugar mills are repeatedly violating storage rules despite earlier warnings, the ministry said in a directive issued to mills on Friday. For this reason, new and strict instructions are being issued, which will be effective from April 1, 2025. Under the new instructions, mills will be deprived of the benefits of issuing excess sugar and government schemes for multiple violations in the sugar season. You will also not get the benefit of DFPD and DSVO schemes.

Action: There may be a ban on sugar allocation in future

1.For the first violation of the rules, 100 per cent of the excess sugar sold will be deducted as a penalty from the consignment to be released next month.

2.Violations for the second time will be reduced by 115 per cent, for the third time by 130 per cent and for the fourth time by 150 per cent.

3.Future allocations to mills sending less than 90 per cent of total reserves without notice will be banned.

4.Ethanol purchase allocation may also be cut.