The government is not opposed to decontrol of the sugar sector, provided it does not affect the interest of the farmers and consumers, informed food secretary B C Gupta, in a conference held on Tuesday.

"The government is not averse to any decontrol, provided it does not cause difficulty to the farmers," Gupta said.

Industry body Indian Sugar Mills Association (ISMA) has been demanding that the government give the industry the freedom to sell sugar in the open market.

It also wants the removal of the levy sugar system, under which mills are required to sell 10 per cent of their production to the government at a subsidised rate for distribution through ration shops.

Through the monthly release mechanism, the Centre fixes the monthly sugar quota that mills can sell in the open market and ration shops.

The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian Industries.

The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian Industries.
The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian Industries.
The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian