Summary
Govt Inteference in sugar sale and SMP, Pricing for cogen, Ethanol Blending all culmintaed to this.
Analysis
It may take several years for Sugar to gain as has lost acerage to other competing crops, also water shortages in North India and also future water shortages predicted for North which is largest producing region is a setback.
Govt unless deregulates sugar Traders will manipulate shortages and for luring farmers back to raisingthe crop SMP price should be enhanced, Cogen purcahse price should be enhanced, Ethaol Blending price should be enhanced, Harvesting machinery should be incorporated in larger scale to overcome labour shortage and unwillingness to take up manual harvesting.
Industry should also invest in water,Soil,Crop betterment practices not alone milling. India needs more ratoons from sugar fiels not limited to 2 or 3 years.
Though late industry is forced to realise handicaps and is highlighting GOI.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
