New Delhi, Jun 30 (PTI) With the GST coming into force from tomorrow, the cooperative sugar federation NFCSF today said the government should create a price stabilisation fund (PSF) to be used in times of price fluctuations.

The suggestion was made in a recent meeting of the Commission for Agricultural Costs & Prices (CACP), a statutory body that recommends the MSP of agri-crops. Indian Sugar Mills Association (ISMA), which represents private sugar mills, was also present in the meeting.

Currently, the government has a PSF for pulses, oilseeds and other commodities, and not for sugar. It is being administered by the consumer affairs ministry.

"This (PSF) could help the sugar industry in times of market fluctuations, sugar export and timely paying cane prices," National Federation of Cooperative Sugar Factories (NFCSF) President Walse Patil said in a statement.

He suggested the CACP that PSF can be created by diverting sugar cess, once excise duty gets subsumed with GST.