Sugar Stockholding
Govt warns of strict actions against sugar mills violating stock limits
This story was originally published at 09:43 IST on 4 December 2025
Register to read our real-time news.Informist, Thursday, Dec. 4, 2025
NEW DELHI - The government has warned sugar mills of strict actions for violating the monthly stockholding limits, including deductions in monthly sales quotas, loss of export privileges, and reduction in ethanol orders, according to a notification from the Department of Food and Public Distribution.
The food department announces stockholding limits for each sugar mill to stabilise sugar prices. As per the notification, mills that dispatch more than their prescribed sales quota for a particular month, will face deductions in subsequent monthly quotas.
The deduction will be equivalent to 100% of the violated quantity in the first instance. This will increase to 115%, 130%, and 150% for the second, third, and subsequent violations in a year.
If any mill dispatches less than 90% of its allotted quota in a month without prior intimation by the 20th of that month, the non-compliant mill's quota will be reduced accordingly, the notification said. Mills dispatching less than 90% of their quota without prior intimation will also face cuts in the following month's quota. The government said mills that violate stockholding limits more than twice in a year will not be granted export quotas.
Oil marketing companies may reduce ethanol procurement from mills repeatedly violating stockholding limits. The government will redistribute the quantities deducted from non-compliant mills to complaint mills, the notification said. "These guidelines shall be strictly applied w.e.f October, 2025 onwards and January, 2025 monthly stockholding limit order will be issued on this basis," it added. End
Reported by Afra Abubacker
Edited by Vandana Hingorani
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
