Indian Sugar Mills Association, ISMA has hailed the recommendation of Rangarajan Committee to decontrol the sugar industry. ISMA Director General Abinash Verma said, the decontrol of the sector will be in the interest of all stakeholders, including farmers, millers and consumers. He said, the sugar decontrol will lead to a stable and predictable environment.

AIR correspondent reports that the current annual output of Indian sugar industry which is worth about 80,000 crore rupees can grow at double digits and double its worth to one lakh 60 thousand crore rupees over the next five to ten years. De-regulation is likely to reduce the cyclical trend of cane production too.

With consolidation and contracts between mills and farmers, there will be more sustained cultivation of cane across years. Also mills will be able to manage their cash flows better and reduce inventory costs, which in the past have led to delay in payment to farmers. Guaranteed payments to farmers and a fair return for their produce are more likely to reduce the volatility in cane acreage and consequently sugar production and prices.