Uniform cane price may ease shortages

Written by Bloomberg | New Delhi | Updated: Oct 31 2009, 04:50am hrs
Indias decision to fix sugar cane prices nationwide may ease shortages in the worlds biggest sugar-consuming country and smooth fluctuations in annual crops, industry officials said.

The government is determining a benchmark price that mills will pay under a policy announced by the food ministry October 22. Until now, states fixed their own prices, often at levels higher than the nationwide cost, leading some millers to reduce cane purchases and refined sugar output.

Now, all mills will pay the same price, Vivek Saraogi, managing director of Balrampur Chini Mills Ltd., Indias second- biggest producer, said in a telephone interview. It is the best thing thats happened to the industry in 25 years,he added.