Pawar rules out decontrol of sugar for now

‘More measures in the offing to check prices; Onion availability to improve soon’

Rising prices have taken a toll on major reforms in the sugar industry. Decontrol of sugar is off the government’s agenda.

Union Agriculture Minister Sharad Pawar today told Business Standard that, especially in the wake of an estimated production of 25 million tonnes of sugar, decontrol was not under the Centre’s consideration. This had been the major demand of the sugar industry and Pawar said he had received representation from India Sugar Mills Association to decontrol the industry.

He, however, indicated that sugar exports have not been put on hold. “The Centre has already issued mill-wise release of sugar for exports. Mills have been asked to fulfill necessary conditions by January 31. Simultaneously, the empowered group of ministers has been reviewing the current position of sugar production and prices.”

Indicating that more measures are in the offing to fight price rise, Sharad Pawar said the Centre is in the middle of taking necessary policy and financial decisions to face the situation and, thereby, provide much needed relief to the consumers. He, however, declined to give more details in this regard on the ground that media was not the right forum to disclose such crucial decisions.

Meanwhile, speaking on the sidelines of an inauguration of a government polytechnic college at Manchar in Pune, he said the arrival of onions from Madhya Pradesh, Rajasthan and Saurashtra would improve its availability in the market and bring down prices.

The minister added that the present condition with regard to onion was the result of a seasonal cycle and the situation would improve soon.

He defended the Centre’s policy with regard to production of wheat, rice, sugar, oilseed and pulses. He said these policies yielded results as the Centre had been practically dumping foodgrain in states due to higher production in the last two years.

“Prices of wheat, rice and sugar in India are the cheapest compared to other countries. However, in case of production of tomato or ladyfinger, farmers take decisions. Besides, agriculture produce marketing committees of respective states with separate laws take decisions on vegetable prices. We do not decide on how markets behave,” he said.

The Union minister’s observations come close on the heels of a “MahaSangram Rally” (anti-inflation rally) organised by NDA in Mumbai on January 16.