Food minister Ram Villas Paswan announced imposition of stock limit on sugar mills allowing them to keep only 37% stock by end September end and 27% stock by end October.
"Imposition of stock limit will lead to fall in sugar prices. If prices fall, we will take to the streets, " said Raju Shetty, leader of Swabhimani in a release, warning that sugar can go the onion way if government implements this decision.
The party, having base among the cane farmers of Kolhapur region said that the Co-operative Sugar mills sold sugar last year at Rs 20/kg to Rs 22/kg by bearing losses. They have a stock of about 45 lakh tonnes as against only about 18 lakh tonnes held by Uttar Pradesh mills as the co-operatives waited for the prices to increase.
The organisation has alleged that the stockists will take benefit if sugar prices fall and stock huge quantities.
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