The inquiry report shall, include; (i) whether the production, this year, was low as compared to past years? Was low production the primary reason for increase in prices?; (ii) Was the minimum support price sufficient?; (iii) did mills purchase sugarcane at exorbitantly higher prices than the minimum support price? If yes, then reasons thereof; (iv) reasons for mills not purchasing sugarcane, for a limited period of a few weeks, from the farmers and its impact, if any, on sugar prices; (v) basis for determination of ex-mill price? Reasons for increase in ex-mill price; (vi) market manipulation/cartelization by sugar mills, if any ;(vii) impact of forward contracts on the prices of sugar and whether any mala fide is involved; (viii) whether margins between ex-mill and retail prices increased, compared to previous years, or otherwise. If yes, reasons thereof and potential beneficiaries;(ix) impact of tax increase on sugar prices at ex-mill/retail level; (x) hoarding at whole sale/retail level and within sugar mills vis-à-vis stocks of last year; (xi) was export of sugar justified? Any subsidy given on export and its impact, with potential beneficiaries; (xii) basis for determination of retail price of sugar; (xiii) role of various stakeholders, including government institutions and private sector in increase in sugar prices, including timely/preventive/pre-emptive remedial measures to control sugar prices and mala fide, if any, of any stakeholder; and, (xiv) any other issue, deemed appropriate, related to the increase in recent sugar prices and; (xv) The committee shall also identify and fix responsibility, if any, on any individual/officer/organization, including any purported benefit to a private arty, besides suggesting a way forward for future course of action.

Copyright Business Recorder, 2020