THE Confederation of Indian Industry (CII) has suggested decontrol of sugar, contending that the time is appropriate for the government to go ahead with the move.
Speaking to newsmen here, Mr Ajay S. Shriram, Senior Managing Director of DCM Shriram Consolidated Ltd and Chairman of the CII National Committee on Sugar, pointed out that the opening stocks of five million tonnes (mt) in the new 2011-12 sugar year from October, coupled with the likely output of 26 mt and consumption of about 22 mt, would result in a surplus of 9 mt. Hence, "there can be no better time than now for decontrol," he said.
Highlighting cane payments amounting to Rs 55,000 crore made by mills to 5 crore-odd growers in the 2010-11 season, Mr Shriram argued his case for decontrol, just as it had done for sectors like cement, telecom, aviation and fertilisers.
He emphasised that decontrol would not really impact consumers, as the National Sample Survey Organisation's latest data for 2009-10 showed that the sweetener accounted for only 1.5 per cent of consumer expenditure in rural areas and 2.4 per cent in urban areas.
Speaking to newsmen here, Mr Ajay S. Shriram, Senior Managing Director of DCM Shriram Consolidated Ltd and Chairman of the CII National Committee on Sugar, pointed out that the opening stocks of five million tonnes (mt) in the new 2011-12 sugar year from October, coupled with the likely output of 26 mt and consumption of about 22 mt, would result in a surplus of 9 mt. Hence, "there can be no better time than now for decontrol," he said.
Highlighting cane payments amounting to Rs 55,000 crore made by mills to 5 crore-odd growers in the 2010-11 season, Mr Shriram argued his case for decontrol, just as it had done for sectors like cement, telecom, aviation and fertilisers.
He emphasised that decontrol would not really impact consumers, as the National Sample Survey Organisation's latest data for 2009-10 showed that the sweetener accounted for only 1.5 per cent of consumer expenditure in rural areas and 2.4 per cent in urban areas.
Source : Exim News Service - NEW DELHI, Sept. 6
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