Call to stop selling sugar via brokers

The Central Gujarat Chamber of Commerce (CGCC) has asked the government of Gujarat to stop selling sugar produced in cooperative sugar manufacturing units through brokers.

The CGCC has submitted a memorandum to Bhupendra Chudasma, minister for cooperatives, agriculture, on the issue.

At present Gujarat-based co-operative sugar mills sell their produce through nominated brokers. CGCC has also proposed a tender system, where the highest bidder can purchase the stock.

Rampal Gupta, the president of the chamber, said: "The present system is not in the interest of sugarcane growers, consumers and the members of co-operatives. The price of sugar is fixed by brokers instead of the demand and supply situation. Brokers have all the capability to manipulate prices of the commodity due to their monopoly to buy sugar from co-operative mills."

The sugar industry was de-licensed in August 1998. Currently, the domestic sugar industry is dominated by the co-operative sector, which accounts for over 55 per cent in terms of the number of factories, installed capacity and production.

Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, Gujarat and Andhra Pradesh account for over 90 per cent of the total sugarcane and sugar production in the country with Maharashtra leading with 30 per cent of India's total sugar production.