Right policies needed for sugar sector's growth: Minister

The industry contributes around 7% to total agriculture GDP, around 30 mn people directly or indirectly depend on it

As the government moves forward on abolishing the levy sugar mechanism as part of its proposals to partially decontrol the sugar sector, minister of state for agriculture Tariq Anwar today said right policy environment is needed to boost the sugar sector as it employs large number of people and contributes 7% of agriculture GDP.

"The problems facing sugar sector have been examined by a number of committees from time to time. The recommendations of the Rangarjan Committee report shall be examined and appropriate decisions to be taken on how best to promote this sector," Anwar said while addressing the conference of the World Association of Beet and Cane Growers (WABCG) here.     

The right policies to boost the sugar industry are necessary as it contributes around 7% to the total agriculture GDP and around 30 million people are directly or indirectly depend on this sector, he said.      

The Food Ministry has moved a cabinet note based on the Rangarajan's report. The proposal is likely to be discussed at the meeting of the Cabinet Committee on Economic Affairs (CCEA) next week. Stating that removal of government controls would improve efficiency in the sector, Anwar said abolition of licensing requirement for new sugar mills way back in 1998 contributed significantly to a structural transformation in the industry.     

India, the world's second biggest sugar producer, is expected to produce 24.5 million tonnes of the sweetener in 2012-13 marketing year (October-September).  

Sugar production expected to be good

India’s sugar production in 2013-14 is expected to good despite concerns over drought in some parts of Maharashtra, the country’s biggest sugar producing state, Executive Director of International Sugar Organisation (ISO) Peter Baron said today.

Though, Baron did not disclose any firm numbers for 2013-14 crop marketing season that will start from October, but said that drought would not have much of an impact.

On sugar decontrol, Baron said ISO was hopeful of a decision soon as it would give a strong signal to the international markets. Drought this year has pushed back planting of sugarcane in Maharashtra and Karnataka raising concerns over the expected production in 2013-14.

However, some industry players have expressed the apprehension that sugar production in 2013-14 could fall to 22-23 million tonnes because of drought. The country produced 24.5 million tonnes sugar in the current crop marketing year that is 2012-13.