Seeking freedom from government control, the sugar industry today asked the Centre to purchase the sweetener from open market for supply through ration shops and end the monthly quota system for sale.
The Indian Sugar Mills Association (ISMA) and the National Federation of Co-operative Sugar Factories (NFCSF), the apex bodies, today submitted their wish-list to the Food Ministry -- a day after Food and Agriculture Sharad Pawar said that the ministry would finalise its decontrol proposals in the next 10 days.
Under the levy system, mills are required to contribute 20 per cent of their production to the government for sale under public distribution system (PDS) at a price determined by the Centre generally lower than the market price.
"With large sugar production expected in the ensuing 2010-11, it would be the most appropriate time to decontrol the sugar sector," ISMA Deputy Director General M N Rao told reporters here at a press briefing jointly addressed by ISMA and NFCSF officials.
Industry assured that decontrol would not lead to any rise in sugar prices.
The four-point proposal mooted by the industry includes doing away with monthly release mechanism, PDS sugar to be procured from the market, removal of sugar from the purview of the Essential Commodities Act and cane price to be fixed on the basis of realisation from sugar and its by-products.
Interestingly, the industry wants that the practice of reservation of cane area and distance norm between two mills should continue. "Cane being a perishable raw material, assured supply of adequate cane within reasonable distance is necessary for the mutual benefit of mills and the growers," ISMA reasoned.
More From This Section
However, some differences appear in the industry over this issue with some mills demanding that there should be no reservation on sugarcane area, as this would lead to competition among mills for buying cane from farmers.
The Food Ministry fixes the monthly quota for sale in the open market as well as supply under public distribution system (PDS) through release mechanism. Mills are required to take release order for exports as well.