Stating that industry associations have been demanding decontrol, he said a decision on this could be taken if there is good production in the next crop year starting October. The minister, however, assured that the government would continue to fix the support price of sugarcane for farmers.
The government controls the sugar sector right from fixing the support price of cane to allocating the monthly quota of sugar that mills sell in the open market.
“Industry bodies have written to us saying that this is the time when the government should consider on decontrolling the sector. We are dicussing and assessing the entire situation,” Pawar said on the sidelines of a conference.
Further he said, the government will have an estimate of sugarcane planting and sugar output of 2010-11 by September first week. Sugar year runs from October to September. “Based on the assessment, we will take a final decision on decontrolling sugar sector and recommend to the Cabinet. Till then, we will not recommend,” Pawar said categorically.
Asked whether the ministry would propose full decontrol or it would be in a phased manner, he said, “One thing is for sure, the right to fix the support price of cane for farmers will definetely be with the government.”
He also said, there would be enough sugar production next crop year.