The sugar industry must adopt technology to improve quality, conserve energy and address environmental concerns, the Finance Minister, Mr Pranab Mukherjee, said. He also asked the industry to improve recovery of sugar from cane and reduce the crop’s water intensity.

Addressing the 41st session of International Sugar Council (ISC), Mr Mukherjee said there was need to develop by-products like bio fuels to improve the financial health of the sugar sector. The industry should also tap the benefits of market-based mechanisms under the Kyoto Protocol such as clean development mechanism.

Mr Mukherjee said the Government has been seeking to stabilise domestic sugar prices by moderating volatility during scarce and surplus domestic sugar seasons. Urging the ISC to take further steps for development and stabilisation of the sector, he called upon the global industry to initiate steps to curb price volatility.

“Much more needs to be done to improve the world sugar economy as the world sugar market continues to experience considerable price volatility,” he said.

The Food Minister, Mr K.V.Thomas, said the Government had been trying to break the cyclicality of the sugar industry through multi-pronged policy interventions. “We try to strike a balance by ensuring that while fair and reasonable returns reach the farmer and the industry, the price of sugar is also kept under check,” he said.

Terming the highly-regulated sugar policy as an “Indian enigma wrapped in mystery,” Mr Peter Baron, Executive Director of ISC, said “It remains to be seen whether India uses the present window of opportunity for further exports, which could facilitate the payment of outstanding arrears of mills to growers”.