What’s the present system of Sugar pricing control in India? What’re the new provisions suggested by noted economist ajan? Rangarajan Committee:Recommendations; Conclusion to all the UPSC aspirants. New Delhi: Sugar cane farmers must be paid 70% of the value of sugar and in the past,” C. Rangarajan, chairman of the Prime Minister’s economic “The Rangarajan committee’s report is a positive move, but how it will be. India is the second largest producer of sugar in the world after Brazil and is also the largest C. RANGARAJAN COMMITTEE REPORT.

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Restriction on movement of ethanol and levying of taxes and duties on it by State Governments continue to be an impediment in successful implementation of EBP. Market The market is also heavily government controlled. This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you.

Crops and Farmer The farmers must sell their produce to the nearest mill. Implementation of Recommendations of Dr.

This is the minimum price that they pay to the farmers for the sugarcane. Pricing of Other products The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry.

Pay 70% of sugar value to cane farmers: panel

There should be no quantitative or movement restrictions on by products like molasses and ethanol. Instead of the present arrangement, the committee has proposed that at the time of cane supply, farmers be paid FRP as the minimum price, as at present.

This will free the industry from the burden of a government welfare programme, and indirectly benefit both the farmer and the general consumer since the rangarakan passes on the cost of levy mechanism to farmers and consumers. Appropriate tariff instruments like a moderate export duty not exceeding 5 per cent ordinarily, as opposed to quantitative restrictions, should be used to meet domestic requirements of sugar in an economically efficient manner.


MOSt or any of its affiliates or. The new system also assures margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills generate profit or not and is not dependent on the performance of any individual sugar mill.

The Central Government considered the recommendations of the committee headed by Dr. This page uses Javascript. There is no reservation of area in Maharashtra. The sugar must be packaged in jute bags. The committee has completed its task, after several rounds of deliberations, consultations with stakeholders, and discussion with Chief Ministers of major sugar-producing states.

However, keeping in view the improvement in production and availability of sugar in the sugar seasonthe stock holding limit and turnover limits has been withdrawn with effect from About 32 lakh farmers have been benefitted. However, getting the recommendations off the ground may be a long process, Rangarajan and the other members of the committee said, as the report needs to be cleared by the cabinet and other ministries as well.

India is the second largest producer of sugar in the world after Brazil and is also the largest consumer. In reliance on the exemption from registration provided by Rule 15a-6 of the U. Rangarajan Sugar mills inflation. Regional Disclosures outside India. This mechanism is not serving any useful purpose, and may be dispensed with.

The prices of the by-products should be market-determined with no earmarked end-use allocations. By-products There should be no quantitative or movement restrictions on by products like molasses and ethanol. At the same time, he said, sugar should be treated like any other commodity as it has the same seasonal cycle and, therefore, curbs on it should be lifted.


Double stage strategy to have better cash flow to mills. Among other recommendations, the committee suggested long-term contracts between cane growers and millers, dismantling of the levy obligation for sourcing sugar for the pub lic distribution system at a price below market levels, and exports of sugar at modest tariffs.

Market Ease the market control of government on export and import. This report is not for public distribution and has been. Based on the share so computed, additional payment, net of FRP already paid, would then be made to the farmer.

Pay 70% of sugar value to cane farmers: panel – Livemint

Get notified whenever I post new article! The levy savings is about crores. In respect of molasses, the committee favours free movement and dismantling of end-use based allocation quotas that are in vogue in several states, to enable creation of a national market and better sygar for this valuable by-product cojmittee well as improved efficiency in its use.

Packaging The sugar must be packaged in jute bags. This report is intended for distribution only to “Major Institutional Investors” as defined by Rule 15a-6 b 4 of the Exchange Act and interpretations thereof by SEC henceforth referred to as “major institutional.

The market is also heavily government controlled. Committees under MahajanTutejaThorat and Nandakumar had similar recommendations.