Reducing Sugar Stock Limit To 10 Days Will Impact Production (10-Feb-2010)
Biscuit makers stated that the government''s decision to reduce stock limits of sugar to 10 days will have an unfavorable impact on their production and also that they should be allowed to keep supplies for minimum 30 days.
However, Federation of Biscuits Manufacturers of India (FBIM) Secretary Mallika Verma stated that any control imposed on stock limit of sugar will restrict manufacturer’s freedom in the manufacture of finished goods.
She also said that there should be a clear distinction between traders and industrial users like biscuit manufacturers, confectioners and others, as long as stock limit is concerned.
Industrial users do not indulge in trading of sugar whereas any stock holding beyond their requirement will only cause additional burden of interest.
Meanwhile, the Food Ministry has reduced the stock limit of sugar for bulk consumers like food processing industries to 10 days of their requirement from the existing 15 days.
This will be in effect from February 20 and the order will be valid for six months.
Moreover, the government also plans to ask the bulk users to source their sugar requirement through imports.
On the other hand, she also said that the international prices of sugar are very high and if industry has to resort to imports it will become price uncompetitive.
Previously, Kanhaiyalal Gidwani, a senior Maharashtra Congress leader has urged the Prime Minister to limit industrial users from consuming domestically produced sugar, stating that sugar prices could touch a high Rs 60 a kg if supply is not hiked.
Such a step can augment the supply by a hefty 40 lakh tonne as 20% of the domestic demand come from industrial users.
He said the Centre should change sugar control policy by restricting industrial users like manufacturers of soft drinks, fruit-juices, alcohol, chocolates and ice-creams from using locally produced sugar and instead allow them to import the sweetener.
Moreover, the Centre has extended the stock limit order for sugar till September for Sugar, where the states are authorized to take action against the hoarders and black marketers.
Earlier the validity of the anti-hoarding order was issued in March, 2009 and was supposed to expire on 31st of January, which has been further extended till September. Previously, the order was extended for 6 months till July, 2009.
However, earlier, it was said that inspite of the promise made by Mr. Sharad Pawar, Food Minister of the country, to reduce the retail prices of sugar, still the prices are increasing.
Therefore, to boost the domestic supply and temper prices, the Prime Minister - Dr. Manmohan Singh approved the proposal to sell imported raw sugar stocks lying at Mundra and Kandla ports.
Meanwhile, the government had announced a vital repose of norms for the import of raw sugar, where the sugar could be refined anywhere in the country and not only by the mill that had imported it.
Mr. Sharad Pawar, Agriculture Minister said to accelerate the refining of raw sugar and improve its availability in the market, the government has relaxed the central excise rules to enable the processing of sugar in any mills of the state.
On the other hand, Mr. Sharad Pawar our Food Minister has said, the country will have enough sugar this year, but the prices of sugar will continue to be higher because of the low output in sugar. Further he said rising prices of sugar is a big concern for the government.
Along with the Food Minister our Prime Minister Man Mohan Singh in a meeting with the Indian Sugar Mills Association (ISMA) has also expressed concern regarding rising of sugar prices and their possible impact on consumer prices.
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