PUNE: While the government is tweaking various policies to control the sugar market in India after the sliding sugar prices, industry experts have called for a need to have permanent policies rather than having seasonal policies.
After doubling the import duty to 100 per cent the government is working on formulating a policy of stock limit on sugar so that sugar flow in the market can be controlled, which in turn will help in price regulation. Experts said that surplus flow of sugar in the market had led to the reduction in prices causing losses to the farmers. This had also forced the sugar millers to approach the government for changing policies related to sugar. Experts said that such policies have also helped in increasing sugar prices in the market.
Industry expert Yogesh Pande said that the recent moves have certainly provided some relief and sugar prices are increasing which will fetch good prices for farmers.
Speaking on the issue, farmers’ leader Raghunathdada Patil said that there is need to keep a watch on the price paid to the farmers for sugarcane. “The recent move to increase import duty is always welcome as it will reduce the flow of sugar in the market. The plans of the government to regulate the stock limit is a seasonal plan and would be helpful for a particular season and we need to have policies which will benefit the farmers in all seasons,” added Raghnathdada Patil.
The farmer leader also stressed on the intervention of the government to solve the difference between the wholesale price of sugar and retail price of sugar. “The government can certainly intervene in the wholesale market and check the rate difference. There is at least Rs 10/kg difference between the wholesale and retail prices,” added Raghnathdada Patil. A senior government official from the sugar commissionerate said there is need to have a fixed price for sugar which is acceptable to farmers, millers and the industry.
“The issue of fixed price will help the industry running or else the chaos between farmers, millers and the industry will continue,” added the official.
The prices of sugar had reduced to about Rs 2,650/quintal to Rs 2,700/ quintal, forcing the intervention of the State government in the issue of the sliding sugar prices.