India may give sugar producers more freedom from state control

NEW DELHI, Dec 23 (AsiaPulse) - Noting that sugar industry would be a priority under the food bill, Indian Food Minister K.V Thomas on Wednesday said the government will consider the demand for partial decontrol of the sector after Parliament session. Making a demand for removal of levy sugar, ISMA President Narendra Murkumbi pointed out that the compulsion to supply 2.6 million tonnes of sugar for the PDS at a discounted rate causes losses of around Rs 3,000 crore (US$570.78 million) to the industry every year.

Addressing the function, Thomas said the issue of decontrol involves a large number of stakeholders -- farmers, mills, States and consumers -- and a consensus needed to emerge on this issue.

Besides removal of levy sugar obligations, the industry has been demanding end of monthly release mechanism, under which food ministry fixes the quantity of sugar that mills can sell in the open market every month.

Expressing concern over cyclical nature of sugar industry he said there was a need to tackle this phenomenon through long-term solution. (PTI) ry The minister also said the government would consider further export of sugar at an "appropriate time", which would be favourable for the industry. Last month, an export o