MUMBAI: The state government is seeking dual pricing for sugar. Minister for co-operation Subhash Deshmukh has written to the Centre, which decides fair and remunerative prices for sugar cane as well as sugar, suggesting two rates -one for commercial users (for makers of sweets, cold drinks, etc) and another for domestic users. The model is the differential pricing in place for resources like electricity, LPG, water for commercial and domestic use.
Deshmukh said commercial users can be charged at a higher rate and household consumers can be given some concessions. It will help keep sugar cheap for the common man, but bring in more income for the financially weak sugar industry. Experts, however, feel such a rule will be a challenge and could lead to malpractices like black marketing of sugar.
Such a rule could also lead to hiking of prices of sugar-laden products, blamed for a range of lifestyle diseases. A sin tax on sugar - like that imposed in most Western countries now - has been spoken about often, but the government has not got around to imposing it. This dual pricing could, because of price rise, discourage people from the buying the sweet treats like aerated drinks.