The Government is not opposed to decontrol of the sugar sector, provided it does not affect the interests of farmers and consumers, a top Food Ministry official said today.
“The Government is not averse to any decontrol, provided it does not cause difficulty to farmers,” the Food Secretary, Mr B.C. Gupta, said at a sugar conference here.
The Indian Sugar Mills Association (ISMA) has been demanding that the Government give them the freedom to sell sugar in the open market.
It also wants the removal of levy sugar system, under which mills are required to sell 10 per cent of their production to the government at a subsidised rate for distribution through ration shops.
Through the monthly release mechanism, the Centre fixes the monthly sugar quota that mills can sell in the open market and ration shops.
The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body CII.