Government to review ban on sugar futures after monsoon: Sharad Pawar

NEW DELHI - Union Agriculture Minister Sharad Pawar on Wednesday said the government would consider lifting the embargo on sugar futures in trading after assessing the monsoon rains and relevant production.

“We have not applied our mind as yet. We are assessing the total sugar production; it will take three to four weeks. Then I will get a proper picture of production situation, monsoon. I will also see next year’s sugarcane plantation scenario,” said Sharad Pawar.

“By that time I will have idea of monsoons. And in any case we will have to protect domestic farmers’ interest,” he added, while speaking on the sidelines of an inaugural function to herald the ‘Price Dissemination Project’.

The sugar spot fell for a third day today on sluggish demand from bulk-consumers and an upward revision in production estimates.

The government had banned trading of sugar futures in May 2009, and the suspension is valid till September 2010.

It has also allowed duty-free import of sugar since February 2009 to curb rising prices and increase domestic availability.

The ‘Price Dissemination Project’, jointly initiated by the commodity market regulator Forward Markets Commission (FMC) and the national commodities exchanges, was commissioned at Azadpur Mandi, regarded as Asia’s largest vegetables and fruits market, to help the farmers with price information by installing ticker indicators. (ANI)