The Hindu Business Line : Sugar price rise

The unprecedented rise in the price of sugar no explanation or reason. Sugar is produced from crushing cane, which means the raw material is produced by cane-growing farmers. The price for cane is fixed by Government under the `statutory minimum price' (SMP) mechanism, which is declared before the start of the crushing season.

The SMP for this season was Rs 74.50 a quintal, which was hardly 10 per cent above that of the previous year. Hence, it is clear that the sugar mills got the raw material at a fixed cost.

From news reports, it seems the consuming industry is putting forward their case not for reducing the unwanted sugar price hike but to plead for duty concessions and other tax exemptions.

There is no logic for the spurt in sugar prices to the tune of 25 per cent within a span of one month considering that the sugar cane crushing industry received the raw material at a fixed price much earlier.

The government should intervene and take strict action against this sort of dubious game against farmers and the public at large.

M.C. George

e-mail

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Taxing justice?

The political economy of tsunami

A case of oppression to rely on

Let not financing be a disaster after rapid onset of natural disasters

FDI in retailing — Short-changing the kirana store?

On course to a majority mess-up

Homeless and alone

Knowledge at risk if you're asking what's VaR

OBC complaints

Sugar price rise