The government will consider lifting ban on sugar futures trading after assessing the production situation and monsoon in the next 3-4 weeks, Food and Agriculture Minister Sharad Pawar today said. Sugar futures was banned in May 2009 and the suspension is valid till September 2010.
"We have not applied our mind. In the next 3-4 weeks, we will assess the final sugar production situation, monsoon and next year's sugarcane plantation scenario," Pawar told reporters after the inaugural function of 'Price Dissemination Project'.
The minister was replying to a query whether the government will consider removing the ban on sugar futures in view of the sharp fall in sugar prices. Pawar also indicated that government may consider imposing import duty on raw and white sugar.
"We will have to protect farmers' interest," he said when asked about imposition of customs duty on sugar. The government has allowed duty-free import of sugar since February 2009 to augment domestic availability and check rising prices.
Delivering his inaugural speech, Pawar said, "Sugar production has reached 181 lakh tonnes and the crushing season is still on." Meanwhile, retail prices for sugar have dipped to Rs 32 per kg at present from nearly Rs 50 per kg in January, he said.
On the next year's sugar production outlook, the minister said, "We firmly believe that there will be storage problem for sugar and the industry will approach us seeking incentives for sugar export."
The 'Price Dissemination Project', jointly initiated by commodity market regulator FMC and national commodities exchanges, was launched today at Azadpar mandi, the world's largest vegetables and fruits market, to help farmers with price information by installing ticker boards.
