The National Federation of Cooperative Sugar Factories Ltd (NFCSFL), an apex body that represents 262 cooperative sugar mills, has suggested sugar rate to be kept at Rs 50-60 per kg for industrial consumer and Rs 30 per kg for retailers.
The dual pricing has already been implemented successfully in electricity supply for industrial and household consumers with separate rates. Even kerosene supplied under the Public Distribution System has dual rate for many years, it added.
Besides, many developed countries have already imposed 'sugar tax' to artificially jack up sugar prices to discourage its consumption, he said.
In India too, major beverage manufacturers like Pepsi and Coca Cola have reduced their sugar purchases and replaced sugar with organic sweeteners like Stevia.
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"Thus, in the light of tough days ahead for sugar sales, it is perhaps the right time for all the major stakeholders of India's sugar sector to come together to push for dual pricing policy for domestic sugar," Naiknavare said.
Naiknavare further said that the industrial bulk consumers have not reduced prices of their products when sugar rates remained lower for last 2-3 three years and thus "earned hundred per cent profit. ...This profiteering sailed through smoothly because nobody questioned this."
"The Federation will take up these issues with the government at an appropriate level," he noted.
"The out of box" strategy is required to check the anti- sugar campaign. The dual pricing will ensure cane farmers get a remunerative price, sugar mills will have a bankable robust balance sheet and the common household consumer will get the sweetener at a reduced rate, he added.
Consumption in India, the world's largest sugar consumers, is growing at a rapid pace of four per cent year- on-year basis. At this pace, India's annual domestic sugar consumption would be touching 30 million tonnes by 2020.
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