Indian government lifts curbs on sales of sugar
- Associated Press
- April 5, 2013 - 2:24 AM
NEW DELHI - The government has decided to lift curbs on India's $15.5 billion sugar industry allowing mill owners to sell their produce in the open market.
Food Minister K.V. Thomas said the decision was made by the Cabinet late Thursday.
India is the world's second-largest producer of sugar and also the world's biggest consumer of the sweetener.
Sugar mills will no longer be forced to sell to the government at a discount to supply the state's public distribution system. Instead, the government will buy sugar from the open market.
Freeing up sugar sales will prevent sharp swings in demand and imports that have led to volatility in global sugar prices. The restrictions on sales had been imposed to control sugar prices in the local market.
© 2013 Star Tribune