New Delhi, November 27: 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