Sugar industry weigh options to tackle crisis: Pawar

The government together with the sugar industry on Monday explored the various options to tackle the present situation affecting cane plantation because of uneven monsoon and soaring retail sugar prices.

According to sources, the meeting between agriculture minister Sharad Pawar and the sugar industry representatives considered various options, one of which was to increase the levy sugar quota from the present level of 10% to 20-30%.

"I can tell you, the industry's attitude was quite constructive. They would like to cooperate with the government and are ready to find some solution where we will be able to improve the availability in the open market and in the public distribution system," Pawar said. The minister would carry forward the talks with the industry in the next two days. "We have decided to meet again. Then probably we will be able to reach some understanding," he said.

A section of the industry made a strong pitch for decontrol saying that time was quite opportune. According to the industry, the government can earmark nearly 24-30% required for public distribution system. Under this formula, states can procure sugar and make it available for PDS and the Centre will make up the expenses borne by the states for this purpose. For the balance, the market will determine the price. The issue of demand-supply mismatch in the sugar industry also came up during the meeting, with both the Centre and the industry players admitting that there are constraints in raw sugar imports because of surge in international prices.

Meanwhile, drought-hit areas in the country's main cane-producing region received heavy rains for the first time in three weeks, but weather officials and the sugar industry were divided about the impact on the crop. India's monsoon rains have been 29% below average since the beginning of June, and in the north Indian state of Uttar Pradesh, which normally produces more than half of the country's sugarcane, the rain deficit has been bigger.

source: fnbnews