Free-sale sugar mechanism scrapped

In a major step towards deregulating the sugar sector, the government has decided to scrap the monthly release mechanism for free-sale sugar from the next cane crushing season beginning October 1, 2005.

The 10 per cent levy on sugar production will, however, continue. This will enable the government to supply sugar for the public distribution system.

The move follows the government's acceptance of all the recommendations of the committee on revitalisation of the sugar industry. The panel was headed by Food and Public Distribution Secretary SK Tuteja.

A senior food ministry official told Business Standard that Food and Agriculture Minister Sharad Pawar had given his nod to implement all the recommendations.