New Delhi: In a bold and drastic new plan to bring down sugar prices the Union Government is proposing a ban on the use of domestic sugar by industry.
According to the new plan sweets makers, soft drink makers, ice cream manufacturers, chocolate companies and biscuit makers will have to import sugar for their products.
Bulk consumers account for two third of the sugar consumed in India. Most of the sugar is used by confectionery and soft drink makers.
The proposal will be referred to the Union Law Ministry before implementation.
Union Government has already limited stock limits of sugar to 10 days from the existing 15 days.
Biscuit makers on Tuesday said the move would have an adverse impact on their production and they should be allowed to keep supplies for at least 30 days.
"Any curbs imposed on stock limit of sugar will restrict their (manufacturers) freedom in the manufacture of finished goods. Such a restriction will adversely impact production," Federation of Biscuits Manufacturers of India (FBIM) Secretary Mallika Verma was quoted as saying by PTI.
She said as far as stock limit is concerned there should be a clear distinction between traders and industrial users like biscuit manufacturers, confectioners and others.
"Industrial users do not indulge in trading of sugar and any stock holding beyond their requirement will only cause additional burden of interest," Verma said.
Coming into effect from February 20, the order will be valid for six months.
The industrial sector consumes about 15 million tonnes of sugar yearly. While 45 per cent of that is used in making sweets, 30 per cent is consumed by soft drink makers.
The rest is divided between ice cream, chocolate and biscuit makers.
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