The Centre has proposed to allow the sale of raw sugar in the domestic market. Indian mills produce raw sugar only for overseas refineries, which turn it into refined sugar. Raw sugar commands a higher price than refined sugar, and its sale in the domestic market could be highly beneficial for the industry. Raw sugar commands a higher price than refined sugar and could boost revenue in the market.
Under the new proposal, khandsari units with a capacity to crush more than 500 tonnes of cane per day will be included in the regulatory relaxation, while smaller-scale units will remain unaffected. The draft regulation also proposes granting the government authority to regulate sugar prices, taking into account factors such as the FRP of sugarcane, the approximate conversion cost from sugarcane or beetroot to sugar, and the average revenue from by-products of sugar production.
Presentation- Dibyabharati Nayak
