Govt may give more sops to sugar industry

The government will consider more incentives to bail out the sugar industry that is currently facing a tough time due to falling prices amid an expected record output of about 265 lakh tonnes in 2006-07 season.

"We have announced export subsidy... There is also a decision to create a buffer stock of 20 lakh tonnes of sugar. If more are to be done, we would definitely consider," Agriculture and Food Minister Sharad Pawar said.

Pawar, who was speaking on the sidelines of 78th AGM of the Indian Council of Agricultural Research Society, denied the government has recieved any demand from the industry to increase the buffer stock to 50 lakh tonnes.

"I have not received any such demand to increase the buffer stock to 50 lakh tonnes from the current level of 20 lakh tonnes. Three days back, I met delegation of Indian Sugar Mills Association and National Federation of Cooperative Sugar Factories and they have not made any demand to raise the buffer stock to 50 lakh tonnes," he said.

The country would have a stock of 300 lakh tonnes in 2006-07 against an annual demand of 190 lakh tonnes, Pawar said, adding prices were bound to be affected if availability was so high. Sugar season runs from October to September.

"Solution has to be found for the current problems faced by the sugar industry. As sugar industry gives a large number of employment, we have to help the industry as well as have to keep the interests of sugarcane farmers," Pawar said.