India Sugar mills federation favours dual pricing model for sweetener.

The dual pricing model comprising sale of sugar at 50-60 rupees per kg to industrial consumers and at 30 rupees per kg to household buyers would be a win-win formula for all major stake holders. The mechanism would help cane-growing farmers get remunerative prices for their cane and also lead to a robust balance sheet for sugar millers. Major beverage manufacturers have reduced purchases and replaced sugar with organic sweeteners like stevia. The consumption of sugar in India is growing at 4% on year, and annual consumption is seen touching 30 million tonne by 2020. Of the total sugar consumption in the country, only 30% is consumed by household buyers, while 70% is used by industrial buyers. But none of these industrial bulk consumers reduced the prices of their products when sugar was fetching a low realization.