By Chuck Muth, President, Citizen Outreach
Writing for Business World, Urvi Shrivastav notes how tough it is to kick the government subsidy addiction once hooked.
India, the largest global sugar consumer and second-largest sugar producer, is sitting on a glut of sugar and payments from mills to farmers have been delayed.
“This is because, sugar mill owners have been saying, excess sugar production, along with decline in consumption, has depressed domestic sugar prices leading to accumulation of arrears.
“Since the mills are unable to garner profit, they are not able to pay fair and remunerative price to sugarcane farmers. The sugar prices are neither going up, nor are we seeing an increase in consumption.”
BW Businessworld
Sugar Export Subsidy: A Need Of The Indian Farmer
The dues to the sugarcane farmer have accumulated to Rs. 25,000 crores or $3 billion in non-payment for their produce, as per a reply given to a question in Parliament in September of 2020
Photo Credit : Bloomberg
It is well known Indian economy has slowed down especially during the pandemic and its aftermath. The Fast Moving Consumer Goods (FMCG) sector, which is believed to be the evergreen sector in Indian economy, is also reporting a slowdown. One of the primary reasons of the slowdown is the delayed payment of the farmer in the sugarcane industry. As per Department of Food Processing and Industry, Ministry of Consumer Affairs India is the second largest producer of sugar in the world, Brazil being the first. Also, we are the largest sugar consumer in the world, with its industrial annual output at approximately Rs.80,000 crores.
Read more about Nifty hits 14,500 mark; breadth remains strong on Business Standard. The equity barometers continued their uptrend in mid-afternoon trade with the Nifty touching 14,500 mark. Firm global cues and robust FII inflows in domestic equities boosted sentiment. At 14:28 IST, the barometer index, the S&P BSE Sensex, surged
Equity barometers were hovering near the day s high with strong gains in mid-morning trade. All sectoral indices on the NSE were trading in the green. Positive cues from other Asian markets supported buying.
At 11:24 IST, the barometer index, the S&P BSE Sensex, jumped 541.39 points or 1.11% at 49,105.62. The Nifty 50 index rallied 157.40 points or 1.1% at 14,438.40.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rallied 1.74% while the S&P BSE Small-Cap index was up 1.5%.
The market breadth was strong. On the BSE, 1969 shares rose and 689 shares fell. A total of 128 shares were unchanged.
In yesterday s trading session, foreign portfolio investors (FPIs) bought shares worth Rs 650.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 42.51 crore in the Indian equity market on 18 January, provisional data showed.
Read more about Sensex spurts 834 pts, Nifty settles above 14,500 on positive global cues on Business Standard. The domestic indices bounced on Tuesday after falling for the past two consecutive sessions. The Nifty closed above the crucial 14,500 mark. All the sectoral indices on NSE ended in green. Firm global cues and robust FII inflows in domestic