Government plans to revise 60-year-old sugar production and pricing norms
The Ministry of Food and Agriculture plans to revise nearly 60-year-old regulations governing sugar production, storage and pricing to keep pace with technological developments.
In this context, the Ministry of Consumer Affairs, Food and Public Distribution has issued the draft ‘Sugar (Control) Decree 2024’.
The Ministry proposes to revise the Sugar (Control) Decree of 1966 in view of technological advances in the production process.
“…there are several changes in the sugar sector which necessitate a revision of the existing Sugar (Control) Order, 1966,” the ministry said in publishing the draft.
The draft decree gives the government the power to regulate sugar production and restrict its sale, storage and disposal by producers and traders.
The ministry invites interested parties to comment on the draft by September 23.
As regards the power to regulate sugar price, the draft reads: “The Central Government, while issuing any order regarding the price of sugar offered for sale… shall take into account the fair and remunerative price (FRP) of sugarcane, the estimated and average conversion costs for production of sugar from cane/beet, and the average returns from by-products arising in the course of sugar production.”
The draft also describes the government’s powers regarding inspection, entry, search, sampling and seizure in relation to sugar production.
The Central Government or the State Government may direct that no sugar and by-products shall be produced from sugarcane except under and in accordance with the conditions specified in the licence issued to the producer, the draft said.
It also provides that the central government has the power to restrict the sale, storage and disposal of sugar by producers and traders.
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First publication: Aug 24, 2024 | 12:25 PM IST