Ministry of Consumer Affairs, Food and Public Distribution issues notification amending the scheme for providing assistance to sugar mills

Sep 16, 2020 | by Avantis RegTech Legal Research Team

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Commercial Compliance

The Ministry of Consumer Affairs, Food and Public Distribution on September 14, 2020 has notified amendments to the scheme for providing assistance to sugar mills for expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar thereby improving the liquidity position of sugar mills enabling them to clear cane price dues of farmers for sugar season 2019-20. To facilitate export of sugar during the sugar season 2019-20, the Central Government has made certain changes in the Notification No. 1(14)/2019-S.P. dated September 12, 2019.

The amendments are as follows:-

• Para 4(iii) relating to submission of claims is substituted. The amended provision says that the claim for each tranche should be submitted within one hundred eighty (180) days from the date of issue of the last bill of lading for which claim is being made. Delayed submissions beyond one hundred eighty (180) days but up to a maximum of two hundred seventy (270) days from the date of issue bill of lading would be allowed, subject to a deduction of 10 per cent of the admissible amount. No claim shall be admissible after two hundred seventy (270) days from the date of issue of bill of lading with respect to exports made during the particular month under consideration.

• Para 7 relating to utilization certificate has been substituted specifying that the sugar mill concerned shall submit bank certificate of export and realization by the bank for the exports made within 240 days from the date of release of assistance. Any failure to submit the bank certificate of export and realization by the bank for the exports within stipulated time would debar the sugar mill from availing benefit under any other scheme subsequently announced by the Central Government and action will be initiated for recovery of the amount including adjustment from dues of the sugar mill in respect of any other scheme being operationised by Department of Food and Public Distribution.

[Notification No. 1(14)/2019-SP-I.]


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