Commentary/Rajiv Shukla

Nothing sweet about this

Wise men, it is said, learn from others' mistakes; fools from their own. But what would you call those who don't learn from their own mistakes, either? Super-fools, maybe?

If so, I think we Indians belong to that category. Hardly has the bitterness of the sugar scandal been overridden by more powerful ones (and the investigation, far from being over, is just taking hold -- the Supreme Court has ordered a fresh inquiry) than our government decides for another mega sugar import.

Now, don't get me wrong. I am not predicting anything. Nor do I see another scandal round the corner -- though, of course, the possibility always exists. But what I see is another mess-up, already in place, in the sugar scenario.

Let me start with a question. Why do we need to go in for an import now? Couldn't we have waited at least till the old mess is cleared up?

The answer, like the query itself, is remarkably simple: No, we couldn't. Because, you see, we need the sugar. We need it now.

So we come to another question. Didn't we know that we were going to face a major shortage? Didn't the government, when it was sweetening its cup from the buffer stock all through last year, realise there wouldn't be any left for another season?

Yes, it did. And had even taken measures to avert such a possibility -- soon after the sugar controversy crusted during P V Narasimha Rao's regime, it issued sugar mill licenses to private parties. Over 400 such licences were issued for setting up mills all over the country which, experts were sure, would boost the production to needed levels. Only, the production, instead of rising, fell -- to 1.1 million tonnes.

And that's the scandal I am talking about.

Now for the 'why' of it, which can be summed in a phrase: The stupid licensing policy which the then government was clever enough to follow. Too short an answer? Wait, I will elaborate.

The maximum number of such licenses, ministry of food and civil supplies officials say, were issued in Uttar Pradash and Andhra Pradesh. But 150 such private companies have been sitting on their licences for the last two years, for reasons best known to themselves.

Naturally, the government's calculations regarding production went for a wide six. Worse, as per the terms of agreement, it cannot do a darn thing to these licence holders who have not even acquired land for the factories. Officials believe they are waiting to sell off their licences.

If we were to analyse how our decision-makers managed to box themselves into this situation, we will find that the licenses were issued without assessing the party's business background or financial position -- whoever had enough political clout managed to get what they wanted. Now, the majority find they do not have enough money to set up factories. Financial institutions have been unwilling to lend a hand. Also, you find some of the licenses have been issued in areas where sugarcane production has a history of failure.

And what about the public sector? Its state is even more pathetic. Many government mills have closed down, and those open are functioning at their lowest ebb of productivity. Thanks to unmatched pilferage and general redtape, most of them are incurring huge losses. In fact, the situation is so bad that several state governments are even planning sell the mills off to private owners!

So, can you blame the year for being an unsweet one? I can't.

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