New Delhi, Sep 13 - Concerned over high prices of sugar, low supplies and fall in output because of drought, the government has asked soft drinks manufacturers and bulk users like Coca-Cola, Pepsi and Nestle to buy sugar overseas.

'We have told manufactures like Coca-Cola that you should findsome other mechanism,' said Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution K.V. Thomas.

'These companies use large quantities of sugar. We have given this suggestion,' Thomas told IANS, adding that the beverage manufacturers have been asked to respond within a fortnight to the government's recommendation, sent a couple of days ago.

'They have to,' the minister categorically said when asked if the companies will follow the suggestions made by the government.

Apart from Coca-Cola and Pepsi, other large industrial consumers of sugar include Britannia, Dabur, Amul, Nestle and Cadbury.

India is the second largest producer of sugar in the world after Brazil. India is also the world's largest consumer, with consumption estimated at 23 million tonnes per annum.

The low output has seen sugar prices double over the past year to Rs.35 a kilogram. In the world market, sugar prices are now at a 28-year high.

According to officials in Krishi Bhavan, the headquarters of the agriculture ministry, the move to ask beverage companies to import sugar was initiated after some states complained the firms were 'hoarding' the commodity.