‘Sugar decontrol likely before Budget’

Feb 08 2013, 12:20 IST
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SummaryThe sugar industry sells 10 per cent of its output to the government at state-determined prices for sale through public distribution system.

Food minister KV Thomas on Thursday said the government is likely to take a decision on decontrolling the sugar industry before the Budget.

His ministry has proposed unshackling of the industry from decades-old control in what is being billed as a major reform initiative.

The sugar industry sells 10 per cent of its output to the government at state-determined prices for sale through public distribution system.

The government also determines the quantity of sugar that mills can sell in the open market on a quarterly basis to check hoarding and to keep supplies steady.

The food ministry, in a note circulated among ministries, has proposed dispensing with the regulatory release mechanism and abolishing the levy system.

Asked if the Centre would take a decision in this regard before the budget, Thomas said “most probably.”

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