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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In addition second round of tender has been opened by OMCs for bidding for procurement of cr litre of ethanol under EBP. The Government of India has reviewed the Sugar Subsidy Scheme and has decided that it is imperative to give access to consumption of sugar as a source of energy in diet, for the poorest of the poor section of the society i. This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you.
Rangarajan on de-regulation of sugar sector and decided to discontinue the system of levy obligations on mills for sugar produced after September, and abolished the regulated release mechanism on open market sale of sugar.
Since the production subsidy scheme was withdrawn before time, the Central Government has decided commitfee disburse the performance based production subsidy for cane crushed during sugar season till the tenancy of the scheme vide notification dated Local consumption is pegged at The capacity is roughly distributed equally between private sector units and cooperative sector units. Page last updated on: Double stage strategy to have better cash flow to mills. Pricing of Sugar 1.
An amount of Rs. This should, however, not be treated as endorsement of the views expressed in the report. Rangarajan Sugar mills inflation.
The directions were issued that no dealer of sugar shall hold any stock for a period exceeding thirty days from the date of receipt by him of such stock and shall not keep sugar in stock at any time in excess of the quantities mentioned against each: In the ethanol seasonout of 80 cr litre contracted about The report was submitted to Singh on Wednesday and will now be examined by the food ministry, after which it will go to the cabinet.
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.
The Government on 3. The farmers must sell their produce to the nearest mill. Rangarajan panel suggests dismantling levy obligation for sourcing PDS sugar at price below market levels. As per the committee, trade policies on sugar should be stable. In reliance on the exemption from registration provided by Rule 15a-6 of the U. So the control by government at every stage is: By-products There should be no quantitative or movement restrictions on by products like molasses and ethanol.
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. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision.
Sugar industry is an important agro-based industry that impacts rural livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills. In the ethanol seasonthe ethanol supply has been historically high and has reached crore litres achieving 4. Implementation of Recommendations of Dr. There is a lot of control by the government both state and centre over the sugar industry.
This was held valid in a Supreme Court judgment in There should be no regulatory hurdles preventing sugar mills from selling their surplus power to any consumer. Levy Sugar Levy sugar may be dispensed with.
Any business interaction pursuant to this report will have to be executed. The more efficient millers will have a better module for increasing revenue. Since the sugar value estimate includes return on capital employed, this implies that farmers would also get a share of the profits.
The de-regulation of the sugar sector was undertaken to improve the financial health of sugar mills, enhance cash flows, reduce inventory costs and also result in timely payments of cane price to sugarcane farmers. The amended provisions of the Sugarcane Control Order, provides for fixation of FRP of sugarcane having regard to the following factors: Even the non-levy sugar faces restrictions on how much must be released in the market, with the objective of keeping prices under check.
Pay 70% of sugar value to cane farmers: panel – Livemint
However, since currently there is an implicit cross-subsidy on account of repodt 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. The FRP of sugarcane payable by sugar factories for each sugar season from to is tabulated below: Based on the share so computed, additional payment, net of FRP already paid, would then be made to the farmer.
A major recommendation of the committee relates to revising the existing arrangement for the price to be paid to sugarcane farmers, which suffers from problems of accumulation of arrears of cane dues in years of high price and low price for farmers in other years.
So the control by government at every stage is:. Nandakumarmember of the National Disaster Management Authority, a committee member. States should be onn 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 sugaf 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.
Import and export rangarqjan sugar is free without quantitative restrictions, but subject to prevailing rate of custom duty.
Pay 70% of sugar value to cane farmers: panel
Compulsory Jute Packing May be dispensed with. Empowering the farmer to do better business. So far, none of the States have taken action, current system continues. Putting proper system for remuneration.
To fulfill the votebank issues as sugarcane farmers form a large votebank. With the amendment gangarajan the Sugarcane Control Order, on Market Ease the market control of government on export and import.
This is the minimum price that they pay to the farmers for the sugarcane.