Government likely to discuss sugar de-control next week

PUNE: The Government of India is expected discuss sugar de-control issue in a meeting in next eight to ten days. Union agriculture minister Sharad Pawar said that government is seriously thinking over the demand. While the industry is also upbeat that at least the first phase of sugar de-control is likely to take place soon.

"There is serious thinking in the government of India on sugar de-control. A delegation led by Maharashtra-chief minister recently met the Prime Minister demanding sugar de-control along with other demands like more export of sugar. Sugar is the only sector in which restrictions are still there. The thinking process has started and some pragmatic decision is expected to be taken. There will be in depth decision on all the issues of the sugar industry," said Mr Pawar at the platinum jubilee celebrations of the Deccan Sugar Technologists Association in Pune on Saturday.

Maharashtra chief minister Prithviraj Chavan had taken a delegation to meet the PM. Mr Chavan had requested permission to export 20 lakh tonne sugar and de-control of sugar. Sources in the industry said that an informal meeting may take place next week to consider sugar de-control.

The Indian Sugar Mills Association (ISMA) believes that the first phase of decontrol is more likely to be implemented. "In the first phase, the government may the obligation of levy quota and the regulated release mechanism," said ISMA director general Abinash Verma.

In the current sugar year, mills are suffering from over production and falling sugar prices below the cost of production. India is expected to have bumper sugar production in the next sugar year October 2011-September 2012.

Meanwhile the agricultural sector is worried about the weakening of the monsoon affecting sowing of major kharif crops like cotton, soyabean, pulses etc. Mr Pawar said, "As per the lasted briefing to my department the July rainfall is expected to be 98%."