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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States have been requested to consider the recommendations for implementation as deemed fit.

Import and export of sugar is free without quantitative restrictions, but subject to prevailing rate of custom duty. The levy savings is about crores.

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 recommendations of the Committee relating to Cane Area Reservation, Minimum Distance Criteria and adoption of the Cane Price Formula have been left to State Governments for adoption and implementation, as considered d by them.

The research analysts, strategists, or research associates principally responsible. The scheme was operated by DGFT.

Rangarajan Committee recommendations positive– Detailed Report

In order to ensure that higher sugar recoveries are adequately rewarded and considering variations amongst sugar mills, the FRP is linked to a basic recovery rate of sugar, with a premium payable to farmers for higher recoveries of sugar from sugarcane. Pricing of Other products The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry.

In addition second round of tender has been opened by OMCs for bidding for procurement of cr litre of ethanol under EBP. It is not in the interest of development of sugarcane farmers or the sugar sector, and may be dispensed with as and when a state does away with cane reservation area and bonding.


Nandakumarmember of the National Disaster Management Authority, a committee member. With such a system in operation, states should not declare an SAP. The committee has recommended dispensing with the present mechanism of regulated release of non-levy sugar, as it imposes additional costs on factories on account of inventory accumulation. Interest burden on this loan, for five years is borne by the Government through Sugar Development Fund.

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.

Mill distance Do away with minimum distance between mills. In years of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to make timely payment of cane price to farmers.

In the yearethanol supplied for blending was only 38 crore litres, whereas inunder the modified EBP supplies increased to 67 crore litres.

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

Can ease central subsidy tension. Under the scheme, so far Rs. Putting proper system for remuneration. In the ethanol seasonthe ethanol supply has been historically high and has reached crore litres achieving 4. The committee has also recommended dispensing with repor mandatory requirement of jute packaging. The mill owners must compensate the farmers according to 2 suggar norms for giving them the sugarcane — FRP and SAP. Committees under MahajanTutejaThorat and Nandakumar had similar recommendations.

Companies where there is interest. Rangarajan panel suggests dismantling levy obligation for sourcing PDS sugar at price below market levels. So the control by government at every stage is: The committee has completed its task, after several rounds of deliberations, consultations with stakeholders, and discussion with Chief Ministers of major sugar-producing states.


The procedure of procurement of ethanol under the EBP has been simplified to streamline the entire ethanol supply chain and remunerative ex-depot price of ethanol has been fixed. This mechanism is not serving any useful purpose, and may be dispensed with.

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

Modern History Hindi English Maths: Broking relationship with company covered. Since onn production subsidy scheme was withdrawn before time, the Central Government has decided to disburse the performance based production subsidy for cane crushed during sugar season till the tenancy of the scheme vide notification dated Prime Minister had set up a committee under the chairmanship of Dr.

The FRP of sugarcane rangxrajan by sugar factories for each sugar season from to is tabulated below: Rangarajan Sugar mills inflation. The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry.

Further, wherever and whenever a state discontinues area reservation, the Centre should remove the stipulation of a minimum distance between two mills.

There is a lot of control by the government both state and centre over the sugar industry. There should be no regulatory hurdles preventing sugar mills from selling their surplus power to any consumer. By-products There should be no quantitative or movement restrictions on by products like molasses committfe ethanol. Get notified whenever I post new article!

Appropriate tariff instruments like a moderate export duty not exceeding 5 per cent ordinarily, as opposed ssugar quantitative restrictions, should be used to meet domestic requirements of sugar in an economically efficient manner.