The bitter truth

Sugar sector needs reforms, not band-aids

No sector has got as many bailout packages as the sugar industry. Yet, this sector’s woes fail to cease. This is evident from recurring piling-up of unpaid cane price arrears, which have again mounted to over Rs 20,000 crore. Clearly, either the official interventions are misdirected or the industry is unable to make the best use of the largesse to acquire adequate resilience against economic shocks. The government also, at times, makes ill-advised and mistimed policy interventions that prove baneful for the industry. A recent example of this was the large increase in the monthly sugar release quota for March,