The proposed deregulation of the sugar industry cannot be completed until families below the poverty line (BPL) receive alternative means of support, argued Shanta Kumar, minister for consumer affairs and public distribution, earlier today.
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At the inauguration of the 19th session of the International Sugar Council, Shanta commented: “Currently, the demand of BPL families is being met through the public distribution system (PDS) [and its quota of 15%…].”
He added however that, “in the event of full decontrol, the government is committed to meeting their needs, even through open market purchase of sugar and its subsequent subsidising for the PDS system.”
Going onto the open market means competing in an international arena however, and the minister admitted that the high cost of sugar production made Indian producers uncompetitive. To deal with this however, Shanta told the ISC: “We are engaged in by-product development and utilisation of the sugar factories.” Emphasis was also being placed on R&D in the sugarcane sector and a move to upgrade the technology used in production.
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