As the country prepares for a better sugarcane harvest next season, increasing possibility of more sugar production, industry and experts have demanded de-controlling the sector - one of the few sectors untouched by the liberalisation bandwagon so far.

The sugar industry says this is the opportune time for de-control as production is expected to be 22-24 million tonne in the 2010-11 season (October-September) while the annual demand is pegged at around 22-23 million tonne only.

The industry has been demanding de-control for the past few years, but the government has always been reluctant to do so due to many reasons.

At the development council meeting for the sugar industry held here yesterday, the representatives of the Indian Sugar Mills Association and National Federation of Cooperative Sugar Factories have also urged the government to de-control the sector.

"The ultimate remedy may lie in full de-control of the sugar industry but the transition needs to be announced in the budget for 2010-11," said Sanjay Kaul, managing director and chief executive of NCMSL, which besides managing sugar stocks of mills also arranges funds for mills against their stocks.