Sweet incentives

HIGHER production of such an essential commodity as sugar is an unexceptionable objective, but opinion will differ on whether the liberal incentives just announced by the Central Government were really indicated at this juncture. The gesture would tend to create the erroneous impression that the sugar industry has been facing difficulties, including financial losses, and that the production has not picked up to the requisite degree for one reason or another. The fact is that the sugar magnates, accustomed as they are to substantial profits, raise a hue and cry whenever their net returns fail below their expectations. They exaggerate their problems and at times even deny the legitimate dues of the cane growers as fixed by the government. But it would be unfair to the cane growers and the vast body of consumers if the authorities accept the mill owners’ contentions, for political or other extraneous reasons. In UP for decades there has been a powerful sugar lobby which has managed somehow to mould the viewpoints of leading politicians of various hues and secure concessions through them. In Bihar and Maharashtra also, sugar manufacturers have played a significant role in regional politics. Moreover, sugar production during the last two seasons has been much in excess of the normal. There has been no significant indication either of cane growers switching over to other crops or of new hurdles in mill owners’ plans for expansion, or of entrepreneurs feeling reluctant to establish new plants. The costs of production and machinery have risen sharply, but this is true of all industries and all branches of agriculture.