CII suggests plan to decontrol sugar industry

New Delhi, Industry body CII today suggested an action plan for the complete liberalisation of the Rs 75,000 crore sugar industry.

On regulations like sugar production, cane price and sale by mills in domestic markets, CII National Committee on Sugar Chairman Ajay Shriram said the Centre''s policy should be streamlined to the best advantage of farmer and the industry.

"...to ensure a buoyant growth for the sugar sector complete liberalisation of the sugar sector is a must," Shriram said.

According to CII, the industry must be free to export and import within reasonable tariff barriers and the cane price must be directly linked to sugar production.

"Unviable sugar price with no linkage to cane price makes it difficult to give remunerative cane price to farmers," he added.

Among others, the industry body suggested to discontinue the exercise of release orders (RO) issued monthly for sale of stock through open market and ration shops.
"... release orders needs to be discontinued to have better cash management and timely payments to the farmers," he added.

Shriram, who is also the Chairman and Managing Director of DCM Shriram Consolidated said, the industry generates employment for around 50 million farmers.

According to government estimate, sugar production for 2010-11 season (October-September) will be around 24.5 million tonne.

source: news.in.msn