New Delhi, MAy 01: Union Agriculture Minister Sharad Pawar on Friday said the sugar prices that had touched Rs.50 a kg last year have started coming down and would see further decline with increased cane production this season.
Rejecting claims of the Opposition members in the Rajya Sabha that the prices had not declined, he said: “From last year’s price of Rs.50, sugar is now being sold at Rs.35 a kg in the retail market and will further come down in weeks to come.”
He, however, said it would not come down to the earlier level of Rs.20, as the minimum support price was increased to encourage farmers grow sugarcane to boost production.
“The kind of prices given to them last year was never ever offered. If the prices are good, more farmers would be encouraged to plant sugarcane,” he pointed out.Mr. Pawar asserted that the production was likely to go up to 180 lakh tonnes in the current season (October 2009-September 2010). Last year, it was significantly low – 150 lakh tonnes. It led to shortages and price hike. “Demand and supply mismatch led to increase in the prices. But now the prices have started coming down,” he said.
—Agencies