Home > Agriculture, Sugar > Decontrol of Sugar Industry Proposed in India

Decontrol of Sugar Industry Proposed in India

The Agriculture and Food Minister, Sharad Pawar has proposed decontrolling the sugar industry from October 2010. Reportedly, the minister has made the following recommendations:

• The government should do away with the system to fix monthly quota of sugar for sale in the open market and through the public distribution system (PDS). It should procure the sugar required for public distribution from the open market. At present, the sugar companies are obligated to surrender 20 per cent of their produce at a subsidised rate to the government for distribution through PDS.

• The government should give freedom to the farmers to sell their produce to those sugar companies that offer them the best price. Currently, growers can sell sugarcane to designated mills only.

While the minister has proposed to decontrol marketing and pricing of sugar, he wants the government to continue to fix the fair and remunerative price (FRP) for sugarcane to protect the famers’ interest. FRP is the minimum price that mills have to pay to procure cane.

Categories: Agriculture, Sugar
  1. December 4, 2011 at 4:22 am

    Best piece of writing.

  2. December 11, 2011 at 6:32 pm

    Admirable post!!

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