Show your sugar production bypasses mkt: HC to Parle
The Delhi High Court has asked Parle Biscuits to prove that production of sugar by the company does not affect the market mechanism.
By PTI |
NEW DELHI: The Delhi High Court has asked Parle Biscuits to prove that production of sugar by the company does not affect the market mechanism.
"We can accept your contention if you show us that your production of sugar bypasses the market mechanism and have no effect on the supply and demand of sugar," Justice B D Ahmad said.
The Court was hearing a petition of Parle Biscuits, challenging the Government's order directing the company to contribute 10 per cent of its sugar produce to the Central Public Distribution System.
The Biscuit giant said that the monthly release order was not applicable to the company as it was manufacturing sugar for its captive consumption.
Since the release of government order, the company was forced to purchase sugar from open market despite having piled up 1,500 tonnes of sugar worth Rs 23 crore which was rotting, Parle contended.
The company cannot use its own stock till it complies with the government order.
Defending the Order, Additional Solicitor General contended that production period of sugar was only four months in a year and the rest eight months were consumption period and being a sensitive item it was necessary for the Government to control the stock of sugar.
Besides this the company is not only manufacturer but also consumer of sugar so its claim of not influencing demand-supply was not right, the ASG contended.
"We can accept your contention if you show us that your production of sugar bypasses the market mechanism and have no effect on the supply and demand of sugar," Justice B D Ahmad said.
The Court was hearing a petition of Parle Biscuits, challenging the Government's order directing the company to contribute 10 per cent of its sugar produce to the Central Public Distribution System.
The Biscuit giant said that the monthly release order was not applicable to the company as it was manufacturing sugar for its captive consumption.
Since the release of government order, the company was forced to purchase sugar from open market despite having piled up 1,500 tonnes of sugar worth Rs 23 crore which was rotting, Parle contended.
The company cannot use its own stock till it complies with the government order.
ADVERTISEMENT
Defending the Order, Additional Solicitor General contended that production period of sugar was only four months in a year and the rest eight months were consumption period and being a sensitive item it was necessary for the Government to control the stock of sugar.
Besides this the company is not only manufacturer but also consumer of sugar so its claim of not influencing demand-supply was not right, the ASG contended.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
