“Earlier, traders would stock sugar and then raise prices on NCDEX in what we call as the Harshad Mehta style. Cheap imports of edible oil have stagnated growth of domestic oilseeds production. Though, the edible oil industry had been demanding increase in import duty for a long time, the government increased it on soyabean oil only recently. The Bhavantar Bhugtan Yojana (Price Deficit Financing Scheme) seeks to strike a balance between consumer and farmer interests by paying farmers the difference between the market price (capped at modal market price) and the minimum support price. “The revenue-sharing formula will make it mandatory for mills to share 75% of their revenue with farmers when sugar prices are high.

Source: Economic Times September 01, 2017 18:22 UTC