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The Centre has imposed a limit on the amount of sugar that bulk consumers can keep in stock, with the new rules coming into effect from September 1, according to an order issued by the Ministry of Consumer Affairs, Food and Public Distribution.
Under the order, a bulk consumer using or consuming more than 10 metric tonnes of sugar per month as a raw material for production, consumption or use will not be allowed to keep sugar stocks for more than 15 days. The order will remain in force from September 1, 2026 to November 30, 2026. It stated, "No bulk consumer using or consuming more than ten metric tons of sugar per month as raw material for production, consumption or use, in any manner shall keep in stock sugar for any period exceeding fifteen days for such consumption or use". The government said the restriction will apply to bulk consumers such as confectioners, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers. For the purpose of the order, a bulk consumer has been defined as an entity consuming at least 10 metric tonnes of sugar per month on average during the last one year, excluding the current month. The government has also laid down a mechanism to verify the quantity of sugar being sold by sugar mills to bulk consumers. According to the order, the monthly quantity of sugar sold by each sugar mill to a bulk consumer, whether directly or through dealers, will be verified. Sugar consumption will be determined with reference to the Goods and Services Tax (GST) returns filed by sellers and buyers using the relevant Harmonised System of Nomenclature (HSN) code applicable to sugar. The stockholding restriction, however, will not apply to institutions belonging to the Central Government, state governments, Union Territory administrations or local bodies. The measure comes with the government putting a defined limit on the amount of sugar that large consumers can hold for their production or other use during the specified period. Under the order, such consumers will have to ensure that their sugar inventory does not remain above the level required for 15 days of consumption. The government has also specified that the order will remain effective for a limited period, from September 1 to November 30, 2026. (ANI)
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