Kolhapur : Maharashtra has proposed a dual pricing model for sugar, under which households and industries would pay different rates, in a bid to shield consumers from rising prices while ensuring better returns for farmers and financial stability for sugar mills.
Only 10-15% of the sugar produced in the country is directly consumed by households through tea and homemade sweets. We are keenly waiting for the policy to be announced,” he said.
State cooperation minister Babasaheb Patil said the proposal was submitted to Centre during a meeting with Union cooperation minister Amit Shah and Union agriculture minister Shivraj Singh Chouhan in March. The rest is purchased by bulk consumers such as confectioners, bakers and pharmaceutical companies,” Patil told TOI. We have proposed that mills reserve the quantity required for household consumption and sell it at a lower price, while commercial users can be charged a higher rate,” Patil said. He said Centre’s decision not to increase the minimum selling price of sugar has protected consumers but has also put pressure on mill finances.
“The idea of dual pricing was suggested by representatives of the sugar industry. “At present, the rate is the same for both categories. “To protect the common public, Centre has not increased the minimum selling price of sugar, but this has put mills under financial stress. The dual pricing policy will help ease this stress to some extent.