The government will soon start allocating sugar quantity to mills for open market sale on half-yearly basis, instead of four-monthly quota, and also “seriously” consider decontrol of the sector, the Food Minister, K V Thomas said today.

It will also decide on raising import duties on sugar, from the current 10 per cent, within 15 days, he added.

“The recommendations of the Rangarajan Committee on sugar decontrol will be seriously looked into by the government. Some of the recommendations will be implemented,” Thomas said at 78th Annual General Meeting of the Indian Sugar Mills Association (ISMA).

The allocation of sugar for open market sale is being done for four-monthly basis — from the earlier practice of monthly quota, he said, adding, “very soon it will be made six-monthly”.

An expert committee, headed by the PMEAC Chairman C Rangarajan, has recently submitted report on sugar decontrol.

Thomas categorically said that the government “does not want it (Rangarajan Report) to have the fate of earlier reports”.

The panel has suggested immediate removal of regulated mechanism through which the food ministry allocates sugar quota to mills for the open market sale.

It has also asked to do away with levy sugar system, under which mills contribute 10 per cent of their production to the government at subsidised prices for the public distribution system (PDS).

On removal of levy sugar, Thomas said the food ministry is discussing the issue with state governments and the finance ministry on how to implement the recommendation. “We will find some solution in short span of time”.

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