Ministry of Consumer Affairs Food and Public Distribution issued a notification regarding Compliance with the imposition of monthly stock holding limits on sugar mills and filling of correct data in the NSWS portal

Feb 27, 2024 | by TeamLease RegTech Legal Research Team

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Industry Specific Compliance

The Ministry of Consumer Affairs, Food and Public Distribution on February 14, 2024, issued a notification regarding Compliance with the imposition of monthly stock holding limits on sugar mills and the filling of correct data in the NSWS portal.

All sugar factories are strongly advised to adhere to the following guidelines meticulously:

•Strict compliance with the monthly Stock holding limit orders for sugar sales in the domestic market is mandatory. Each sugar factory is expected to sell a minimum of 90% of their monthly Release quota.

•Selling sugar quantities exceeding the monthly release quota will be deemed a violation of the Essential Commodities Act 1955 and the Sugar (Control) Order, 1966. Stringent action will be taken against non-compliant factories.

•If a factory fails to sell up to 90% of the monthly release quota, the shortfall between the allocated and sold quantities will be deducted from the release quota of the subsequent month. For instance, if a mill only sells 80 MT out of a 100 MT quota in a month, and its eligible quota for the following month is 120 MT, its quota will be restricted to 80% of the eligible quantity, i.e., 96 MT only. Recurrent violations of the monthly release quota may lead to the suspension of the monthly release quota allocation.

•It is imperative for all sugar factories to accurately report sales/dispatch data on the NSWS portal as per GSTR1. Strict penalties will be imposed for providing incorrect information on the NSWS portal regarding sugar and ethanol.

•Sugar factories are strongly urged to use Metric Tons (MT) as the weighing units for their sales in GSTR1. This Directorate considers quantities in MT (metric tons) on the NSWS portal, as well as monthly release quotas and other report formats.

All sugar mills are reminded to adhere strictly to the monthly Stock holding limit orders for sugar sales in the domestic market and to accurately input data on the NSWS portal and GSTR1. Failure to comply with the instructions outlined in this communication will result in stringent action being taken under the provisions of the Essential Commodities Act, 1955, and the Sugar (Control) Order, 1966, against the offending sugar mills.

[Notification No. 10-1/(2023)-NSWSPortal (382947]


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