CII proposes co-ordination system for sugar sector

Will bring together all the stakeholders in the sugar sector including industry, farmers and scientists for comprehensive growth and development

A high-level task force of the Confederation of Indian Industry (CII) has proposed a national co-ordinating mechanism for the Rs 80,000-crore Indian sugar sector. Such a coordination between industry, farmers and scientists will work towards the comprehensive growth and development of the sector, according to the task force.

As part of its efforts to implement the recommendations of the C Rangarajan Committee, the task force has decided to approach state governments to discuss issues such as reservation of sugarcane area and cane pricing.

The Rangarajan Committee was constituted by Prime Minister Manmohan Singh to reform the Indian sugar sector. It had advocated that state governments should review the sugarcane area reservation system and the price at which sugarcane is sold to mills.

According to the task force, linking sugarcane price to sugar price is essential to ensure fair prices, and timely payment to farmers. The task force members also discussed the need for a legal framework for contract farming, which would lead to better coordination between farmers and the industry as well as increase productivity.

Members of the task force include representatives of the Indian Sugar Mills Association, the National Federation of Cooperative Sugar Factories, and farmers associations such as the Consortium of Indian Farmers Association.