New Delhi: The government today barred large
and bulk consumers of sugar from keeping more than 15 days of
stocks with them, a move aimed at checking hoarding and any
price escalation ahead of festivals Dussehra and Diwali.
The directive follows sugar prices doubling to Rs 35 a kg
in a year's time and concerns that the sweetener might get
more expensive as production has been lower this season and a
poor sugarcane crop is expected next season too.
With this move, those consuming more than 10 quintal a
month would not be allowed to keep more than 15 days of
supplies at any point of time.
The decision has been taken to discourage large consumers
from stock piling sugar and to ensure adequate availability of
the sweetener in the open market, an official statement said.
Since the government has defined bulk consumers as those
who consume more than 10 quintal a month, even sweetmeat
makers would be under the purview of this, apart from MNCs
like Coke, Pepsi, Nestle and Cadbury. Other food processors,
including biscuit and ice cream manufacturing firms, would
also be covered.
The officials of Coca Cola, Pepsi and Rasna declined to
comment.
The order, issued last Saturday, would come into effect
from September 11 and would be valid for six months, a senior
government official said, adding that the state governments
would be responsible for its implementation.
Manufacturer of 'Priyagold' bisucuts Surya Food's
Director Shekhar Agarwal said it is difficult for a small or
medium sized company to keep stock of more than a week since
sugar prices are very high.
Bureau Report
First Published: Monday, August 24, 2009, 21:23