In view of surplus stock position, the Government has imposed stock holding limit on sugar mills w.e.f. June, 2018 to prevent over supply of sugar in the domestic market and to maintain demand-supply balance.
It also supplements fixation of minimum selling price (MSP) of sugar by ensuring that a level playing field is provided to all the mills.
By and large sugar mills are following/implementing the monthly stock holding limit order. Sugar mills which do not comply with these orders, action is taken against them as per provisions of EC Act, 1955.
Sugar mills are statutorily required to fill in the on line P-II Proforma which captures the data of their sugar production and dispatches etc.
on monthly basis and on the basis of which the Government supervises their compliance of stock holding limit orders. States Governments have also been asked to ensure implementation of these orders by the sugar mills.
This information was given in a written reply by the Minister of State for Consumer Affairs, Food & Public Distribution, Shri Danve Raosaheb Dadarao in the Lok Sabha today.