It's time the govt removed curbs on the sugar industry

The country is headed for another spell of sugar glut unless the government lifts all curbs on sugar exports. With the sugar output in 2011-12 expected to exceed the projected demand by three to four million tonnes, it will be the second consecutive year when the market will have to contend with a surplus. Between 2000 and 2003 and again between 2006 and 2008, a similar surplus situation had hit both the sugar industry and sugarcane farmers. While the industry suffered heavy losses owing to a price slump, the cane growers were distressed because of non-payment of their cane price dues by the liquidity-starved mills.

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