GOI may consider implementing dual pricing system for sugar industry

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The prices of sugar have always been a point of talk in the sugar industry especially when it comes to dealing with surplus sugar stocks. From time to time the Government has been providing several remedies like hiking the price of Minimum Selling Price of sugar (MSP), provision of soft loans and assistance for exports.

In order to boost the income of the sugarcane farmer and improve the cash flow of the sugar millers, the Government may consider implementing a dual pricing system for the sugar industry. As per the formula, there will be two different rates of sugar, one for industrial users which will be a higher rate as compared with the other rate for domestic / household users.

Various experts of the industry earlier stated that the Govt. should consider the dual price policy for sugar basis the cost of production and availability since the consumption of sugar through individual tunes only from 30 to 35 percent whereas the remaining 65 to 70 percent is utilized by bulk consumers like bakers, beverages, sweet makers, confectionery, etc. The bulk consumers make hefty profits from the sugar which is their main ingredient. Therefore they should not be subsidized at the cost of the farmers and sugar mills. The issue has been quite debatable however considering the upgradations of data management systems with technology and the dire need of the hour the Govt. may consider implementing the dual pricing system for the sugar industry.

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