Shri Pawar calls for sustainable policy to address problems of sugar sector

Shri Sharad Pawar, Minister of Agriculture, Consumer Affairs, Food and Public Distribution, today called for having a re-look at the sugar policy for healthy growth of the sugar sector. ‘The policy should fully utilize the multifaceted potential of sugarcane, make the industry globally competitive, reduce wild fluctuations in production and prices of sugar and contribute to the energy security of the country,’ the Minister said.

The Minister brought to the attention of Members of Parliamentary Consultative Committee attached to his Ministry the wide fluctuation in production of sugarcane and sugar seen over the years. Compared to last year’s sugar production of 193 lakh tonnes, the production this year is likely to be 227 lakh tonnes or more. Added with about 44 lakh tonnes of carry-over stocks, this leads to availability of 271 lakh tonne sugar as against consumption of 185-190 lakh tonnes. Even after taking into account buffer stock of 48 lakh tonnes, the quantum of surplus comes to 33 lakh tonnes. This surplus needs to be disposed of so that sugar mills are able to pay cane prices to farmers. Such fluctuations in production also make farmers grow sugarcane and shift to other crops in a cyclical pattern. ‘We must break this cycle and ensure that fluctuations in sugarcane and sugar production are eliminated,’ Shri Pawar emphasised.

Shri Pawar informed that the Government has taken a number of steps to liquidate the surplus stock, which has put subsidy burden of about Rs. 800 crore on the Government. Instead of ad-hoc measures, sustainable solutions must be found to the recurring problems of shortages and surpluses, he said.

Sugar, Shri Pawar said, is one of the most controlled sectors as there are restrictions on sale for domestic and export markets, compulsory levy obligation, fixation of cane price, restriction on farmers to supply cane to a particular sugar factory and restriction on setting up new sugar factory in 15 km, etc.

Emphasising that policies need to be changed in tune with the changing world, the Minister felt that Indian industry can gain from new opportunities that have come in the wake of EU vacating the export market following WTO ruling, emergence of ethanol as a viable and sustainable source of bio-fuel and utilization of bagasse to produce power.

Secretary, Food and Public Distribution, Shri T. Nand Kumar, and senior officials of the Ministry were present in the meeting.

The following Members of Parliament attended the meeting: S/Shri P.C. Gaddigoudar, Hansraj Ganapat Ahir, Bhanu Pratap Singh Verma, M. Appadurai, Alok Kumar Mehata, Kailash Baitha and Ms. Archana Nayak (Lok Sabha), S/Shri Thennala G. Balakrishnan Pillai and Shri Sharad Joshi (Rajya Sabha).

Source : Press Information Bureau

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