New Delhi: Alarmed by rising prices, the
government on Thursday said it will consider extending ban on
futures trading of sugar beyond December, if necessary, to
curb speculative activities in the market.
"Futures trading of sugar was suspended from May 27 up to
December 31, 2009. If required, authorities concerned will
give serious thoughts to extend it," Food and Agriculture
Minister Sharad Pawar told the Lok Sabha.
Apart from sugar, futures trading of tur, urad and rice
have been banned since early 2007.
Pawar admitted that the rates have risen "abnormally" to
Rs 38 a kg in the National Capital from Rs 20 a year earlier.
The minister said there was a gap between demand and
supply as sugar production slumped to about 15 million tonnes
in the 2008-09 season (October-September), compared with 26.4
million tonnes in the previous season. The country needs about
23 million tonnes of sugar for its annual consumption.
Pawar also highlighted that farmers are getting the
highest price for sugarcane in the last 50 years. In southern
states, cane growers are getting as much as Rs 230 a quintal.
He asked sugar mills in Uttar Pradesh to pass on the
benefit of high sugar prices to farmers, else farmers will be
tempted to shift to other crops. "70 percent of the sugar
price should go to farmers (for providing cane)."
Pawar also said he will write to state governments to
ensure better prices to farmers for their produce.
PTI
