The future looks rosy for the Indian sugar sector following recent moves by the government to chop out-dated controls and introduce greater market freedom.
In light of India’s trade deficit with China, which since 2010 has more than doubled to over US$40bn, the country hopes that three food and pharmaceutical agreements signed with China this week will have an impact on the shortfall.
The Indian government is firm on sugar decontrol and would step back from this sector by the end of this year, a top official on the committee in charge of deregulation said.
India has taken a step closer to deregulating its sugar industry with Prime Minister Manmohan Singh constituting a special panel to discuss and examine issues around removing government controls from the sector.
India urgently needs a national food processing policy which incorporates tax breaks for the sector, the nation’s Prime Minister Manmohan Singh told a conference of state food processing ministers this week.
