ISMA hopes PM panel will give positive report sugar decontrol

Hailing government's decision to form an expert committee to examine decontrol of sugar sector, the apex industry body ISMA today said it expects the panel to give positive recommendations and the same would be accepted by the Centre.

Prime Minister Manmohan Singh today constituted an expert committee, headed by his Economic Advisory Council Chairman C Rangarajan, to examine issues related to decontrol of sugar sector, perhaps the only industry under government control.

Welcoming this decision, Indian Sugar Mills Association (ISMA) Director General Abinash Verma said: "I hope this panel consisting of experienced government officials and experts in this field would submit its report early. I hope that this high-level committee will give a positive recommendations for the benefit of industry as well as farmers".

Verma also hoped the government to accept the suggestions made by the committee on sugar decontrol.      Earlier this month, the representatives of the apex sugar industry bodies ISMA and NFCSF had met Finance Minister Pranab Mukherjee, seeking partial decontrol of the sector, including freedom to sell sugar in the open market and doing away with the obligation to supply sugar at lower rates, for distribution through ration shops.

Industry has been demanding removal of the monthly release system under which food ministry allocates quantity of sugar to be sold in the open market every month.

Under the levy obligation, sugar mills are required to sell 10 per cent of their output to the government at cheaper rate for distribution under the Public Distribution System.

According to industry estimates, millers incur a loss of about Rs 2,500-3,000 crore to meet levy obligations.