Some of the confusion surrounding parleys — initiated by Prime Minister Deve Gowda — to deli cense sugar, seem to be clearing now and there are definite indications that the Center does not have decontrol on its mind. Even industry representatives, who met PM Deve Gowda last week to protest against the move to deli cense sugar, were not sure whether controls over distribution would be lifted as well. DE licensing at this stage only includes lifting the bar on setting up mills beyond the mandatory 25 km radius from sugarcane growing areas.
The Industry Ministry will ultimately take a stand on deli censing, since the subject comes within the purview of the Industrial Development Regulation Act. Monitoring Sugarcane production and Support prices for farmers are the business of the ministry of agriculture. The Ministry of Food decides on the price paid to the mills and the quantity they have to stock.
It may be recalled that the Center had to release 50,000 tons of extra sugar this month to level out market prices, which were raging high despite a near glut at the mills. Two “consequent years of bumper cane crops and the subsequent increase in sugar production have built up hi stocks with the mills. The higher market prices indicated that the sugar production had not reached the market yet. For the coming three months, mills have been exempted of their levy Obligations, to entice them to sell freely in the market. Many farmers in Uttar Pradesh and Maharashtra among other states are still to crush sugarcane. Most of the standing cane is in Uttar Pradesh, where mill owners owe money to farmers in way of arrears for payment for their crop.
Article extracted from this publication >> July 3, 1996
