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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So the control by government at every stage is: The market is also heavily government controlled. Instead, pass on the subsidy to state government, which can buy the sugar from the market and give it subsidized.

When the state government issues its SAP then the mills in the state are bound to pay by that amount only. However, keeping in view the improvement in production and availability of sugar in the sugar seasonthe stock holding limit and turnover limits has been sugat with effect from State-wise demand profile has also been projected, keeping in view distances, capacities and other sectoral demands.

The more efficient millers will have a better module for increasing revenue. Ethanol is an agro-based product, mainly produced from reporr by-product of the sugar industry, namely molasses. Has no voice State government issues price Has most voice. Market Ease the market control of government on export and import. The de-regulation of the sugar sector was undertaken to improve the financial health of sugar mills, enhance cash flows, reduce inventory rangarajqn and also result in timely payments of cane price to sugarcane farmers.


Regulated Release Mechanism This mechanism is not serving any cc purpose, and may be dispensed with. This should, however, not be treated as endorsement of the views expressed in the report.

Now the government control on the major aspects can be visualized easily. Compulsory Jute Packing May be dispensed with. 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 industry passes on the cost of levy mechanism to farmers and consumers.

This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. This report is intended for distribution to institutional investors. Can ease central subsidy tension. States should be allowed henceforth to fix the issue price of PDS sugar, while the existing subsidy to states for PDS sugar transport and the difference between the levy price and the issue price would continue at the existing level, augmented by the current level of implicit subsidy on account of the difference between the levy price and the open market price.

However, since currently there is an implicit cross-subsidy on account of the levy, some level of Central support to help states meet the cost to be incurred on this account may be provided for a transitory period. Recommendations Remembering the earlier diagram of the sugar process and the government control, the Rangarajan committee report recommendations can be easily mapped. There is no reservation of area in Maharashtra.

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

With the amendment of the Sugarcane Control Order, on rangaraja How does Government control Sugar industry? Interest burden on this loan, for five years is borne by the Government through Sugar Development Fund. Any investment or investment activity to which this document relates is only available to major. Unauthorized disclosure, use, dissemination or copying either whole or partial of this information, is prohibited. The levy savings is about crores.


Dealer who bring sugar from outside West Bengal: It is not in the interest of development of sugarcane farmers or the sugar sector, and comittee be dispensed with as and when a state does away with cane reservation area and bonding. However, in case some states want to continue it for the time being, they should do so while ensuring that area reservation is done for at least three to five years at a time, so that industry has a stake in its development.

[Economy] Sugar Pricing and Decontrol, Rangarajan Committee, FRP vs SAP meaning, issues, explained

The sugar must be packaged in jute bags. Crops and Farmer Stage 2: There should be no regulatory hurdles preventing sugar mills from selling their surplus power to any consumer.

Release mechanism has been dispensed with. 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.

The year was a water-shed for the sugar industry. Conclusion to all the UPSC aspirants: