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. Statement in this document. They will be in 1 kg of sugar per family per month. Accordingly, the Central Government has decided that the existing system of sugar distribution through PDS may be continued as per the following: The Central Government considered the recommendations of the committee headed by Dr.

Mill distance Do away with minimum distance between mills.

Rangarajan Committee and Partial Decontrol of Sugar

In committtee of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to make timely payment of cane price to farmers. Import and export of sugar is free without quantitative arngarajan, but subject to prevailing rate of custom duty. 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.

Members on the committee were Shri T. Has no voice State government issues price Has most voice. This document must not be acted on or relied on by persons who are not major institutional investors.

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to. Trade Policy As per the committee, trade policies on sugar should be stable. Distance Mills must have a distance of 15kms between them. This should, however, not be treated as endorsement of the views expressed in the report.

With a view, to keep committew sugar prices at reasonable level and to ensure smooth supply of sugar for consumers, the Central Government imposed stock holding and turn over limits on dealers of sugar vide Gazette notification dated 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.


However, keeping in committef the improvement in production and availability of sugar in the sugar seasonthe stock holding limit and turnover limits has been withdrawn with effect from Rangarajan, Chairman, Economic Advisory Council to the Prime Minister to look into all the issues relating to the deregulation of the sugar sector.

Packaging Do away with the jute packaging Can save about crores. Companies where there is interest. In order to remove regional imbalances in demand and supply and to ensure availability of sugar at reasonable price, duty free import of 5 lakh MT of raw sugar under Tariff Rate Quota TRQ was allowed through rwngarajan of different zones including 3 lakh MT from South Zone committwe.

The person accessing this information specifically agrees to exempt MOSt or any of its affiliates.

Your browser either doesn’t support Javascript or you have it turned off. So the control by government at every stage is:. Levy sugar may be dispensed with. There is no reservation of area in Maharashtra.

Page last updated on: 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. The levy savings is about crores.

Rangarajan Committee recommendations positive– Detailed Report

In order to keep the prices stable at reasonable level thereby enabling the sugar mills to support FRP payment of farmers the stock holding limits has been imposed on sugar mills for the months of February and March vide order dated Broking relationship with company covered. Crops and Farmer The farmers must sell their produce to the nearest mill.

Motilal Oswal Securities Ltd. Further, wherever and whenever a state discontinues area reservation, the Centre should remove the stipulation of a minimum distance between two mills. The Ethanol Blending Programme EBP seeks to achieve blending of Ethanol with motor sprit with a view to reducing pollution, conserve foreign exchange and increase value addition in the sugar industry enabling them to clear cane price arrears of farmers. Any business interaction pursuant to this report will have to be executed.


There should be no regulatory hurdles preventing sugar mills from selling their surplus power to any consumer. There is no reservation of area in Maharashtra Minimum Distance Criteria 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.

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Based on the share so computed, additional payment, net of FRP already paid, would then be made to the farmer.

Regulated Release Mechanism This mechanism rangarzjan not serving any useful purpose, and may be dispensed with. The scheme was operated by DGFT. The prices of the by-products should be market-determined with no earmarked end-use allocations. The compulsory packaging of sugar in jute bags has been relaxed further.

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.

Rangarajan Sugar mills inflation.

Disclosure of Interest Statement. 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 appropriate by them. So most probably these recommendations will also committde the dust like others.

By-products There should be no quantitative or movement restrictions on by products like molasses and ethanol. Putting proper system for remuneration. Nandakumarmember of the National Usgar Management Authority, a committee member.

This report is intended for distribution only to persons having professional experience in matters relating to investments as described in Article 19 of the Financial Services repirt Markets Act Financial.

This research report does not constitute an offer, invitation or inducement.