It could be sweet medicine for some, bitter for others. A government panel has recommended policies that could transform the market for sugar in India. It says the government needs to switch to a uniform pricing system across states. This pricing system is to be based on the weighted average of retail prices of sugar across the country. The panel also proposes that 67-70% of the zonal weighted average be added to the floor price of sugarcane.
Former RBI governor C Rangarajan led the panel on sugar pricing. It was dealing with a commodity that remains both highly controlled and highly politicized.
And in other news, India is looking to expand its access to Russian oil in a big way. ONGC’s overseas arm, OVL, is talking to Russia’s OAO Rosneft about participating in an oilfield and a refinery. The field in question has an estimated reserve of some 500 million metric tonnes. Meanwhile, the refinery is being positioned to sell processed hydrocarbons to East Asian countries.
If the deal goes ahead, it will require several billions of dollars worth of investments. Typically, OVL partners with other Indian oil firms for large acquisitions abroad.
And finally, Indian stocks broke a five-day winning streak on Tuesday, with the Sensex falling the most it has in two weeks. The index lost 62 points to close at 20,499. And the Nifty went down 11 points to end trade at 6,146.