with the sugarcane production in India lagging behind and demand increasing continuously it is disadvantage sugar milling companies in india. Sugar in India is an issue which holds the potential to be thorn in flesh of government. sugar in India is subsidized and as a result the Millers are forced to sell the sugar at artificially low prices whereas they have to give high prices to farmers for the sugarcane procurement. This is bound to affect the profitability of sugar millers in India. Also they can't hold stocks as stipulated by govt. of India fearing that hoarding of stocks could lead to ballooning of sugar prices.
Further more sugarcane prices are quite high due to demand from Jaggery producers who are getting almost 100 percent profits on sale to Liquor firms who use the molasses for processing of liquors. And in India an Indian man can't let go of his bottle as much as housewives will have to readjust their sugar budgets...
but what i think is that govt. must take a step forward and annul the subsidy on Sugar as it is not that much an essential commodity and also this would help in making people healthier as for sure consumption would reduce somewhat even though we all know that indians have sweet tooth.
please share your views on above article...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment