Who Is Responsible For Tasteless Sugar ???

Reason Behind Less Sugar – There was record production of sugarcane in 2006-07. Mills were not able to purchase sugarcane at the rate of 60 Rs. per Quintal. There was a huge interest on mills of farmers. At many places, farmers burned their sugarcane after reflection of mills. At that time in country 283 lakhs ton sugar made, whereas requirement was only 263 lakh ton, but even then it is still more than gross production. Again circumstances repeat itself. On mills, farmers’ interest rose up to 7000 crore. It is next to impossible for mills to pay such a large amount to farmers. Then Govt. came forward to help out sugar industry. Due of this farmers were very disappoint and in 2009-10 productivity of sugarcane was only 150-160 lakh ton, whereas requirement is 230 lakh ton.

Right Now Stage – We need 20 lakh ton sugar. Our maximum productivity is 160 lakh ton, means there is lack of 90 ton. During running financial year, central Govt. import 70 lakh ton sugar by which 9 lakh ton sugar is on port. After observation in conclude that only 59 lakh ton sugar reach the market. It means before upcoming sugarcane season there is a lack of 30 lakh ton sugar. Well, except import, we have no more option.

RISE IN PRICES, WHY ??? – Here market strategy works, funda is, if demand is more than supply then price rises. Due to this businessman’s, industrialist earns more profit. Secondly, in global market, there is rise in price of sugar, which makes situation more critical. Thirdly, Sugar industrialist says that to fulfill their social responsibility they give 20 % of sugar to govt. on regular rates that is 17 Rs. Per Kg. Due to this they are in 50% loss of productive rate. So that, they fulfill their lose of remaining 80% of sugar. Except this, Increase in processing rate, Increment in salary is also responsible for rise in the price of sugarcane which goes up to 250 Rs Quintal. Except this, Stock is also responsible. Central Govt. stops Businessman to collect more than 2000 ton sugar till more than 15 days. But misfortune is, it’s also not working perfectly.

SUGAR INDUSTRIALIST’S POINT OF VIEW - Sugar industrialist Says, utilization of 50% of sugar is in other products like cookies, juice, cold drinks, toffee and medicine etc. Only 35% of sugar used by city consumers whose income is good. Rest of 15% sugar is consumed by rural areas. In other words we can say that only 10 % sugar goes to required and poor peoples who is highly effected by rise in price if sugar.
(For Rural People) Per person in one month 1-2 Kg sugar used in industry or consume whose income is also increasing.

RESERVE BANK ……STILL NOT ABLE TO SOLVE PROBLEM – Reserve bank published his 3 month review about inflation. In this note it is mention that Rate of Inflation would increase from 6.5% to 8.5 %. On the other basis, bank thinks Rate of Inflation would increase continuously in spite of Govt’s effort. People were thinking that Reserve Bank would take any of strict action to stop inflation. In Review only CRR (Cash Reserve Ratio) increase, because of this requirement of money would lesser in market. But it is still in doubt that how much inflation would effected.

Expert says that because of increment in CRR, money would reduce in market. This will not be so much helpful to reduce inflation because country is anxious so much about pricey food products. Supply directly affected by import and increment in productivity. Increment in interest rate will be because of increment in CRR. Due to this Home Loans, Car Loans would highly effected and people would not be able get Home and Car loans easily. Whereas , in review RRR is undefined and untouched. If RRR increases then loans would sudden increase, because of this public mostly Industrialist would be in trouble.