Sugar industry hails govt's proposed decontrol plan

NEW DELHI: The sugar industry on Friday hailed the government's proposed plan to decontrol the sugar market saying it would benefit both the consumers and the farmers.

Food and Agriculture Minister Sharad Pawar on Friday said he favours ending government's role in fixing sales quota on industry, adding that the government would consider withdrawing controls on the sector only after assessing the likely sugar production in 2010-11 crop year.

"We welcome the minister's statement on decontrol of the sugar market, which was long-awaited," Indian Sugar Mills Association (ISMA) Deputy Director General M N Rao told.

National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Vinay Kumar said, "It will be good if the government decontrols the sector, as it will help consumers, farmers and sugar makers."

At present, the government controls the sugar industry right from fixing the support price of sugarcane to allocating the monthly quota for mills to sale in the open market.