"The government is not averse to any decontrol, provided it doesn't cause difficult to farmers, " Food Secretary B C Gupta said in a sugar conference here.
Sugar industry body Indian Sugar Mills Association (ISMA) may be demanding that the government give them the freedom to sell sugar on view market.
It also wants the removal of the garnishment sugar system, under which mills are required to sell 10% of the production to the government at a subsidised rate with regard to distribution through ration shops.
Through the monthly release system, the Centre fixes the monthly sugar quota that mills can sell on view market and ration shops.
The industry supplies levy sugar at 60% of the price of production, resulting in a loss of about Rs two, 500-3, 000 crore every year, according to industry entire body CII, which recently threw its behind the demand for decontrol from the sugar sector.