New Delhi: The Central Government on Tuesday gave green signal to the proposal of decontrolling the sugar industry after putting certain limitations on it.

After Agriculture Minister Sharad Pawar, Union Food Minister KV Thomas also approved the proposal on Tuesday.

Addressing the 52nd Annual General Meeting of National Federation of Co-operative Sugar Factories here, Thomas asked the sugar industrialists to suggest ways for monitoring the sugar prices so that the BPL families could get sugar at subsidized rates round the year.

Concerned over the immediate problems such as black marketing and hoarding that may emerge after decontrolling the sugar sector, Thomas said that the sugar industry should come together to suggest ways for tackling such issues.

Refusing the demands of sugar industrialists to expand the area of new mills from 15 km to 40 km, Food Minister said that it is not possible as the recommendation of the state governments is equally necessary for such action.

Criticising the sugar industrialists over the non- production of Ethanol despite relaxation of mixing it with the petrol, Thomas said, “Scarcity of Ethanol is creating problem.”

The government has now approved the direct production of ethanol from sugarcane instead of molasses.