Though sugar mills are not keen on including cane reservation area as part of decontrol proposals? it did not figure in a set of demands officially submitted by the millers to government?sources said the government was actively considering including reservation of cane area as part of the draft decontrol proposals to be sent to the Cabinet for approval.
Sources said though states have their own set of rules on reservation of cane area, but the ?mother act? which delegates power to states for reserving sugarcane area is with the central government and it is unlikely that any state will challenge the change in main provisions.
Currently, farmers of a particular area have to sell their sugarcane to designated mills which is determined by governments.
Recently, majority of Indian sugar millers represented by Indian Sugar Mills Association (ISMA) and National Federation for Cooperative Sugar Mills (NFCSF), has submitted a set of proposals for decontrolling the sugar sector which included government purchasing the sweetener from open market for supply through ration shops and removing the monthly quota system for sale.
They have also demanded removal of sugar from the purview of the Essential Commodities Act and fixing of cane price on the basis of realisation from sugar and its by-products.
Sources said the government is unlikely to recommend removal of sugar from the purview of essential commodities act and retain its right to fix a price for the sugarcane.
Food and agriculture minister Sharad Pawar too had said that the central government will retain its right to fix sugarcane price in the interest of farmers.
Last week in a written reply to the Parliament, minister of state for agriculture, food and consumer affairs, KV Thomas said that the government has received a set of demands from the sugar industry, but a decision on deregulating the sector on decontrolling the sector will only be taken after evaluating all aspects including availability, price situation, its impact on cane growers, impact on the consumers of sugar and distribution of sugar through the public distribution system. ?Government will ensure that interest of poor consumers is protected,? Thomas said.
Meanwhile, in a recent meeting between sugar millers and government on decontrol of sugar sector, millers too, are believed to have come around the view that reservation of cane area should form part of the decontrol proposals.