The decision will come into effect on Sept 19
The government has prescribed a time limit of four weeks for bulk consumers to bring down their sugar stock to 15 days’ requirement.
In the notification issued by the Ministry of Consumer Affairs, Food and Public Distribution, three weeks was given for so reducing the stock. After representation from the industry, the time limit was increased by one more week from the date of notification.
The directions were issued by the ministry on August 22. Thus, the stock limits will take effect from September 19. The requirement of 15 days will be determined and certified by a chartered accountant and then sent to the appropriate authority.
The ministry has also advised all state governments to impose stock limits for storage of pulses for bulk consumers. Officials said consumers should alternatively use yellow peas as a substitute for pulses, since both have the same nutrition value, while yellow peas are much cheaper.
Sources said these measures were bound to bring down retail sugar prices, the objective of the government, since bulk consumers account for 60 per cent of total sugar consumption. Thus, by controlling the demand of bulk consumers, prices are expected to come down for retail consumers. Moreover, during sudden checks and raids on industry and company godowns, it has been found that some bulk consumers are maintaining sugar stocks required up to March 2010, apprehending a rise in prices, official sources said.
Sources, however, maintained that the rise in sugar prices seems more pronounced since these are compared against last year’s abnormally low figure. Last year had seen bumper production, which had prompted the government to increase export of sugar.
Bulk consumers range from sweetmeat makers to companies whose monthly requirement of sugar ( raw or refined) exceeds 10 quintals. Currently there are no such limits imposed any consumer for storing sugar.