Jul 5, 2011

Indian Sugar Sector de-control developments

After almost 1 year Since July 2010, yesterday, Agriculture Minister Sharad Pawar Said that the Central Governmet is expected to hold a meeting in next 10 days to discuss a meeting regarding decontrolling Sugar Sector from the country.
If partial or full decontrol happens it will be interesting to see what impact it could make on the efficiency and profitability of the Sugar mills, as the govt has criticized that some mill owners has so long tried to keep the prices ‘controlled’ by the govt, while most big industrial in this houses have had expressed that govt is doing ill to sector by not decontrolling the sector.
It is notable that as Sugar is one of the basic and most essential commodities so far that the central govt has to keep the prices administered rather that determined by market forces. However the 2nd phase of liberalization as we like to call it, started with getting rid of ‘administered’ prices in