New Delhi, September 22 (Daily Kiran) : Central Minister for Road Transport and Highways, Nitin Gadkari, stated on Tuesday that the prices of agricultural products, including sugar, are now primarily determined by global demand and supply dynamics. He noted that in the current phase of the global economy, the role of governments in setting these prices has become limited.
Gadkari made these remarks during an event organized by the National Federation of Cooperative Sugar Factories Limited (NFCSF). His comments came as ministers from various states and industry representatives were advocating for an increase in the minimum support price for sugar. Currently, retail prices of sugar in the domestic market have risen above ₹70 per kilogram due to supply shortages.
He explained that globalization has increased the influence of international markets on agricultural product prices. Sugar prices, in particular, are significantly affected by production and supply trends from major producing countries like Brazil. Other agricultural products also fluctuate based on the conditions in leading global markets.
“We are now part of the global economy, and under such circumstances, no government can dictate agricultural product prices, even if it wishes to do so,” Gadkari remarked. He pointed out that practical circumstances often make it difficult to implement administratively set prices.
Highlighting India’s competitive challenges, Gadkari mentioned that Brazil benefits from large-scale mechanized farming, which keeps its production costs significantly lower. The cost of sugar production in Brazil is about ₹23 per kilogram, while in India, it hovers around ₹33-34 per kilogram. Consequently, when Brazil experiences surplus production, it puts pressure on both the global and Indian markets.
Gadkari addressed the income issues faced by farmers, indicating that in many areas, agriculture is no longer economically viable. To enhance farmers’ incomes, he stressed the need to promote innovation and diversification rather than relying solely on traditional farming methods. Sustainable solutions will only be possible if new income sources related to agriculture are developed.
Regarding the future of the sugar industry, Gadkari asserted that depending solely on sugar production is no longer a practical strategy. He advised sugar mills and the industry to focus more on biomass utilization, straw-based products, organic fertilizers, and other value-added products.
Such initiatives could serve as additional revenue sources for both sugar mills and farmers, providing long-term stability for the industry. Gadkari suggested that the Indian sugar sector must evolve beyond traditional business models to embrace innovation, diversification, and alternative income opportunities, which could help increase farmers’ incomes and create a more sustainable industry.
Leave a Comment