Govt Clarifies: Monthly Stock Limit Not Applicable To Khandsari Sugar Units
The Centre has clarified that the monthly stock holding limit does not apply to Khandsari sugar units and no restriction has been imposed on their sugar sales. The government has asked Khandsari units with 500 TCD capacity and above to register on the NSWS Portal.
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The government has clarified that the monthly stock holding limit (quota system) is not applicable to Khandsari sugar factories as of now and no restriction has been placed on the sale of Khandsari sugar. But now all Khandsari Units having a capacity of 500 TCD and above have to register themselves on the government Portal.
In a communication to khandsari units, Department of Food and Public Distribution (DFPD) stated, “All khandsari units are free to sell khandsari sugar in the open market as before. The decision has been made to balance the operational viability of khandsari units.”
The department further informed that Khandsari units having a crushing capacity of 500 TCD and above now fall under the ambit of the Sugar (Control) Order, 2025. All Such units have been asked to register themselves on the NSWS Portal to help ascertain actual production and consumption patterns of Khandsari sugar across the country.
The clarification comes amid confusion in the market following the inclusion of Khandsari units under the Sugar (Control) Order, 2025. Now it is clear that the monthly release order mechanism applies only to sugar mills producing refined sugar and Khandsari units remain free to sell sugar without monthly quota restrictions.
The clarification is expected to ease concerns among traders and small traditional Khandsari units, particularly in Uttar Pradesh, where a majority of such units operate.
