CPI and farmers' body All India Kisan Sabha today opposed the decontrol of sugar and sought withdrawal of the decision, saying it would lead to rapid hike in prices and encourage profiteering by mill owners.
"The government assures that there will be no price rise as it will pay extra amount to the mills and subsidise sugar through public distribution system, government will pay additionally Rs 5,300 crore as subsidy. But it is a temporary step. This is not a subsidy to the consumers but to the mill owners," the CPI Central Secretariat said in a statement.
Opposing the decontrol move by CCEA, CPI said the government would "increase sugar prices, to the market price after elections, without any doubt. Decontrolling of sugar is going to increase the sugar price in the market which will be additional burden on the consumers".
The All India Kisan Sabha (AIKS) said the decision "will only promote the interests of the profit seeking Corporate Sugar Mills at the expense of farmers, consumers and the cooperative sector. Clearly the Government has stood by the Rs 80,000 crore sugar lobby and removed controls to facilitate unbridled profiteering".
It pointed out that state governments would now have to procure sugar from the open market for PDS and "annually the sugar companies will see an increased profit of thousands of crore...Already within 24 hours of the decision, an increase of over Rs 50 per quintal in the open market is seen".
Maintaining that sugar mills would have "a free hand", AIKS said they would be able to "create artificial scarcity and play havoc with availability to jack prices. Dumping also may adversely impact the prices of sugarcane and put farmers in further distress".
Sugarcane pricing has also been left solely on state governments and "nothing has been clarified on the State Advised Price," the Kisan Sabha said demanding a rollback of the decision.
