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Surinder Sud: The sugar sector\'s last resort

2013-01-29 06:51:48| Sugar Industry News

Who does the government want to protect by holding the sugar sector in shackles? It is surely not sugarcane farmers, who get pre-determined prices whether fixed by the Centre (the so-called fair and remunerative price or FRP) or by state governments (the state-advised prices or SAP), both of which are far divorced from the market price of sugar. Nor is it the sugar industry that is feeling stifled unable to take its own commercial decisions. In fact, excessive controls and regulations, besides ill-advised import-export policies, often disallow sugar mills to recover even production costs, as is the case today.

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