PM admits failure on sugar front

Prime Minister Manmohan Singh today admitted to government's failure on the sugar front which led to steep rise in prices of the commodity and said ways and means need to be explored to see that crisis does not recur.

"If there is a failure of economic policy, it is with regard to sugar....We have not been able to find a practical and pragmatic way to deal with the cyclical behaviour of sugarcane production," Singh told the Rajya Sabha while replying to the debate on Motion of Thanks to President's Address.

"I do admit weakness," he said about the government's failure to realise the cyclical nature of the crop which changes every 2 to 3 years.

His statement assumes significance as Food and Agriculture Minister Sharad Pawar has been attributing the sharp increase in sugar prices to the cyclical nature of the crop.

Pawar has been under attack over food inflation, particularly sugar. Even sections within Congress have been unhappy with his handling of the crisis. While food inflation is still ruling above 17 per cent, sugar prices in particular had touched Rs 50 a kg before declining to Rs 43 a kg.

The Prime Minister, however, rejected the Opposition charge of a scam in sugar saying exports were negligible and were carried out for meeting the country's international obligations.

In the Lok Sabha, he said ways and means had to be found to stabilise the sugar economy.