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Sugar mills prohibited from selling entire production at market rates

Sugar mills prohibited from selling entire production at market rates
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First Published: Wed, Mar 07 2007. 01 10 PM IST
Updated: Wed, Mar 07 2007. 01 10 PM IST
Bloomberg
NEW DELHI: India, the world’s biggest sugar user, has no plans to allow sugar mills to sell their entire production at market rates, farm minister Sharad Pawar said.
“I don’t have any proposal and neither are we thinking about it,” Pawar said.
India may allow mills to sell their entire production at market rates from 1April as the government seeks to decontrol the sugar industry, a leading newspaper reported.
The government may spend more than $225 million (Rs 1001 crore) to sell sugar at below market rates to the poor through ration shops, replacing the so-called quota system, the report said. The levy obligation requires producers to sell 10% of their output to the government at below-market prices for resale to the poor.
Indian sugar producers can sell 90% of their output at market rates, while the government usually fixes the quantity and time of the sale every month.
Separately, India’s wheat production may reach 73.3 million tonnes this year, which is 0.8 million tonnes more than estimation of last month, because of favorable weather, Pawar said.
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First Published: Wed, Mar 07 2007. 01 10 PM IST