The sugar industry in India is going through a very rough phase. Sugar - the second largest agro-based industry – supports over 50 million farmers and their families in this country, and thus takes care of their economical sustenance and development. However, its own survival is at risk these days as almost all sugar mills are reeling under debts and mounting losses. Nothing seems to work for sugar companies. Government intervention can help. Linking sugar and sugarcane prices is the first and foremost demand of the sugar industries.
Though sugar industries no longer need to sell 10 per cent of their sugar production at cheaper rates and can sell their entire production at market prices, government needs to do much more. The biggest hurdle before the industry has been the strong disparity between sugarcane and sugar prices. Whereas minimum payment for sugarcane is fixed by both central and state governments, there is no such mechanism in place for setting the sugar prices.
In the last many years, sugarcane prices went up like anything; however, sugar prices didn’t see much increase. This caused huge losses for the industry. This is high time for the government to step in and roll out some concrete measures to enhance the viability of the industry.
Though sugar industries no longer need to sell 10 per cent of their sugar production at cheaper rates and can sell their entire production at market prices, government needs to do much more. The biggest hurdle before the industry has been the strong disparity between sugarcane and sugar prices. Whereas minimum payment for sugarcane is fixed by both central and state governments, there is no such mechanism in place for setting the sugar prices.
In the last many years, sugarcane prices went up like anything; however, sugar prices didn’t see much increase. This caused huge losses for the industry. This is high time for the government to step in and roll out some concrete measures to enhance the viability of the industry.
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