An expert committee on sugar decontrol is scheduled to meet on the 3rd of May to examine the issue of decontrol of the sugar industry. The committee headed by Prime Minister's Economic Advisory Council Chairman C Rangarajan also includes Chief Economic Advisor in Finance Ministry Kaushik Basu, secretaries to the Department of Food and Agriculture, Agricultural Costs and Prices (CACP) Chairman Ashok Gulati, former Agriculture Secretary Nand Kumar and K P Krishnan, Secretary EAC.
It is being said that the committee is in favour of deregulating the industry, though they have categorically stated that the final decision will be taken after hearing the views of all the stakeholders concerned.
The sugar industry is completely controlled by the government, right from the level of production to distribution. As per regulation sugar mills are required to sell 10% of their output to the government at below-cost rates for supply to ration shops and also the food ministry allocates the quantity of sugar to be sold in the open market every month. Sugar mills have been supplying the levy sugar at 60% of the cost of production, resulting in an annual industry loss of about Rs 2,500-3,000 crore.
The Apex sugar industry bodies, Indian Sugar Mills Association and National Federation of Cooperative Sugar Factories, have sought partial decontrol of the sector, including freedom to sell sugar in the open market and doing away with the levy obligation for the Public Distribution System (PDS).
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