Scheme for Creation and Maintenance of Buffer Stock of Sugar

Jun 19, 2018 | by Avantis RegTech Legal Research Team

The Central Government, with a view to improve liquidity of the sugar industry and enabling them to clear cane price arrears of farmers and to stabilize domestic sugar price, has notified the Scheme for Creation and Maintenance of Buffer Stock of 30 Lakh MT of sugar by the sugar mills in the country for one year with effect from July 01, 2018.

The funds to be provided to the sugar mills as reimbursement of the carrying cost towards maintenance of the buffer stock are to be used firstly for payment of cane price dues of farmers for the current sugar season 2017-18 as also for arrears of previous sugar seasons.

A sugar mill shall be eligible for the quarterly reimbursement of the buffer subsidy in respect of the quantity of buffer stock maintained by it and for the period in the relevant quarter for which such stock has been maintained, provided it has:

(a)    maintained the allocated buffer stock, for the entire period either in full or in part for which the buffer stock has been created (unless permitted to dismantle in accordance with provisions of this scheme);

(b)   submitted the utilization certificates in respect of buffer subsidy, disbursed for earlier quarters as per time schedule specified under this scheme;

(c)    filed timely monthly statutory return in that is Proforma-II relating to data on cane crushing, sugar production, sugar stock, etc. as prescribed by Department of Food & Public Distribution under the provisions of Sugar (Control) Order, 1966.

(d)   fully complied with the following orders/directives issued by Department of Food & Public Distribution during 2017-18 sugar season:-

(i)     S.O. 2346, dated 07.06.2018 relating to minimum selling price of sugar;

(ii)   Order No. 5-1/2018-Sugar Control, dated 07.06.2018 relating to maintaining minimum stocks of sugar after sale of maximum specified quantity for the month of June, 2018 and similar Orders to be issued for subsequent period

[Notification No. 1(6)/2018-SP-I]




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