Sugar stock checks to intensify after GST discrepancies

Pune: The government has decided to intensify physical verification of sugar stocks starting Friday, after finding discrepancies in the weekly sales and goods and services tax (GST) data submitted by some mills. Traders said sugar supply has tightened ahead of key festivals.

The Centre is set to intensify the physical verification of sugar stocks held by sugar mills, stockists, traders and retailers at a time when the sugar demand for the upcoming Dussehra and Diwali has started picking up. "It has been decided to carry out intensive physical verification drive, starting October 9," the Department of Food and Public Distribution said in a letter to sugar mills and other stakeholders.

The department initially changed the monthly quota to fortnightly, and earlier this month, it introduced weekly sales targets. The government had directed all sugar mills to sell and lift or dispatch at least 45% of the fortnightly allocated quota for October during the first week, with the balance quantity to be sold and lifted during the succeeding week. A failure to meet this obligation would attract provisions of the Essential Commodities Act, 1955, and the Sugar (Control) Order, 2025, it said.


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In its letter addressed to sugar mills, the department said, "On detailed analysis of the GST details and sale particulars furnished by sugar mills for the period of August 17 to 19, discrepancies have been detected in the information furnished by certain sugar mills." As both the government's and industry's production estimates for 2025-26 proved inaccurate, the government has introduced policy measures to streamline the supply chain to ensure sugar is not hoarded at any point in the supply chain.

The government is examining the discrepancies with reference to the relevant GST records, sale invoices, buyer particulars and dispatch or lifting records. "Where the discrepancies are established, appropriate proceedings/action are being initiated against the sugar mills concerned under the applicable provisions of law," the letter said.

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The government intends to cross-examine the sale particulars furnished by sugar mills with GST records and physical verification records, according to people familiar with the matter.