PM urged to stop sugar supply to industrial users

In a letter to Prime Minister Manmohan Singh,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.

Gidwani said these companies should be given three months to clear their stocks of domestically produced sugar,else action under the Essential Commodities Act be initiated.

Stating that these industrial users currently consume about 20 per cent of the total domestic demand,he said,”if they are restricted from using domestically produced sugar and made to import their own requirement,it will make available that extra quantity in the open market to bring prices down.”

“Current price of Rs 50 a kg can be brought to below Rs 40 and an additional quantity of about 40 lakh tonne of sugar will be available for the open market,” he said,adding,this will even ensure a stability for the price in the open market.

Gidwani cautioned that if these drastic and prompt actions are not taken,the price of sugar will go as high as Rs 60 a kg in the open market.