Panel formed to decontrol industry

The Centre has set up an experts' panel to look into the viability of decontrolling the sugar industry, a government official said.

"Last month, the government had decided to set up the panel...work has already begun," the official said.

He said the panel would study the feasibility of decontrolling the sugar industry.

The panel has been set up in the wake of demands from the sugar industry. It has been insisting on full decontrol for a competitive environment and better growth.

The Centre has been following partial decontrol of the industry since 1979, and in 2003 it had announced full decontrol in a phased manner to be spread over two years.

However, the industry is yet to be completely free from the government control. The industry is seeking abolition of monthly sugar release mechanism under the free sale quota and levy quota followed by the government. Under the partial control of sugar industry, mills are allowed to dispose of 90 per cent of the sugar produced without any restriction on price and movement.

The balance 10 per cent is to be supplied by them at prices fixed by the government for sale under the public distribution system.

Both free sale and levy sugar are subject to monthly quotas decided by the Centre. "The sugar produced in 4-5 months in a year is controlled and regulated to be sold throughout the year," the official said.

The monthly release is to ensure that the sweetener is available throughout the year at reasonable prices, while at the same time maintaining the price at a steady level helps the industry.