The government may consider giving more sops to the
sugar industry which is facing a crisis in the wake
of a record output and fall in prices, finance minister
P Chidambaram said in an interview to a television channel
have increased buffer stocks from 20 lakh to 50 lakh
tonnes. There is a committee which will report in a
next couple of days about rescheduling of debt and we
can look at some other options," he said.
, the world''s largest consumer and second-largest producer
of sugar is facing a glut with an increase in production
and a fall in demand.
He said the government was in discussions with the sugar
industry on further relief measures. "We are looking
into it," he added.
union cabinet had recently raised the buffer stock of
sugar to 50 lakh tonne after a record production this
year but had deferred a decision on extending the moratorium
on debt taken by sugar mills for a period up to March
the government known that the sugar output in the current
season would be 275 lakh tonne, it would have taken
a decision to lift ban on exports much before, Chidambaram
estimates put 190-210 lakh tonnes of sugar production.
Therefore, the government correctly took a decision
not to allow exports in December 2006.Now estimates
put production at 275 lakh tonnes, if we knew of estimates,
we could have lifted ban on exports even before December,"