Your scientific theory merits some thought, but it may be possible that economic considerations may be at the root of this serious matter. "Free sugar" may be less costly, and thus result in a more competitively priced product. We must evaluate the question: is the sugar of a controlled, or uncontrolled origin? Indeed, if the product containing the "free sugar" is of Indian production, then I cite the following:
In an interview with Mr Prayesh Jain, Mr Debjyoit Chatterjee and Mr Laxmikant Khanvilkar of India Infoline Ltd, Mr Naiknavare talks to us about the dynamics of the sugar industry and its prospects.
Sugar being an essential commodity carries a lot of importance, however, given the governments decision to slowly free the sugar from its clutches is impacting its production. Your comments please.
Sugar has been an essential commodity for two reasons. One it is a very essential and critical part of our daily diet. Second, sugar per se is not consumed to a large extent. Institutional demand nearly accounts for two-third of the total consumption. Hence, it continues to remain an essential commodity. However, the Government is planning to free the distribution of sugar. Currently, Government has a decisive role in distribution of sugar across the country. The expectation that decontrol shall take place in October 2005 are now void, as the production of sugar, which was down by 30% this year, is likely to fall further as the sugarcane producing areas have received lower rainfall. Going ahead the sugar industry will have to be decontrolled. Our contention on the subject is that scrapping of Release Mechanism be done in phased manner and in conjuncture with Sugar Trading in Forward and Future market.
If we look at the history, in times of drought, sugar has never been on the priority list of the Government, as sugarcane production requires a lot of water. Consequently, the sugarcane producing regions do not get adequate attentions as other daily essentials such as Water, Rice, Wheat etc in that order, gets a top priority.
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