SME Times News Bureau | 22 Dec, 2011
The government is planning to remove restrictions on the sugar industry to boost its competitiveness, Minister of Food, Consumer Affairs and Public Distribution K.V. Thomas said Wednesday.

"We are trying our best how deregulation can be brought in. The issue is being discussed at the highest level," Thomas said at the annual general meeting of the Indian Sugar Mills Association (ISMA) in New Delhi.

Thomas said he would take up the matter with Finance Minister Pranab Mukherjee after the winter session of parliament to devise a mechanism for deregulation of the sugar industry.

"I am in constant touch with the finance minister. We will have a detailed discussion on it after the winter session of parliament is over," Thomas said.

The extended winter session of parliament ends Dec 29.

ISMA president Narendra Murkumbi said the association has urged the government first to remove the sugar industry's obligation to supply 10 percent of its production as levy sugar at a discounted price to the public distribution system and abolish the monthly regulated release mechanism.

Under the monthly regulated release mechanism, each mill is directed by the government to sell a certain quantity of the commodity every month.

"None of these controls are being exercised by the government on any other agri-business sectors in the country," said Murkumbi.