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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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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 interim, the current system may continue.

Rangarajan Committee and Partial Decontrol of Sugar

The views expressed in this research report accurately reflect the personal views of the analyst s about the subject securities or issues, and no part of the compensation of the research analyst s was, is, or.

With a view, to keep the 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 Pricing of Sugar 1.

Disclosure of Interest Statement.

Packaging Do away with the jute packaging Can save about crores. Instead, pass on the subsidy to state government, which can buy the sugar from the market and give it subsidized. 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in production and availability of sugar in the sugar seasonthe stock holding limit and turnover limits has been withdrawn with effect from Members on the committee were Shri T.

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

Broking relationship with company covered. This was a guest post by Mr. 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 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 committse cane dues in years of high price and low price for farmers in other years.


Recommendations Remembering the earlier diagram of the sugar process and the government control, the Rangarajan committee report recommendations can be easily mapped.

Employment is also generated in various ancillary activities relating to transport, trade servicing of machinery and supply of agriculture inputs.

Rangarajan Committee Issues Gist of Recommendations Status Cane Area Reservation Over a period of time, states should encourage development of such market-based long-term contractual arrangements, and phase out cane reservation area and bonding. India started with 6 million tonnes mt of carry-forward sugar stocks and is likely to produce 24 mt of sugar in the new year despite an estimated drop in Maharashtra, the largest sugar producing state, according to a Reuters report.

Has no voice State government issues price Has most voice. This should, however, not be treated as endorsement of the views expressed in the report. The more efficient millers will have a better module for increasing revenue. Compulsory Jute Packing May be dispensed with. Conclusion to all the UPSC aspirants: 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.

Your email address will not be published. Further, to evacuate some surplus sugar stocks over estimated domestic consumption through exports for keeping the market sentiments buoyant, Government has also devised Duty Free Import Authorization DFIA Scheme in respect of sugar vide DGFT’s notification dated This is the minimum price that they pay to the farmers for the sugarcane.

Rangarajan Committee and Partial Decontrol of Sugar – General Knowledge Today

So far, none of the States have taken action, current system continues. Consequent upon sugar prices reaching substantially higher levels than required for operational viability of the sugar industry, the Central Government had withdrawn production subsidy scheme vide notification dated The farmers must sell their produce to the nearest mill.


The amended provisions of the Ragnarajan Control Order, provides for fixation of FRP of sugarcane having regard to the following factors: However, in case some states rangaajan to continue it for the time suhar, 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.

A scheme was notified on Empowering the farmer to do better business.

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Regulated Release Mechanism This mechanism is rwport serving any useful purpose, and may be dispensed with. The export and import of sugar is decided by the government depending upon the domestic demand.

Rangarajan Sugarr mills inflation. The market is also heavily government controlled. Import and export of sugar is free without quantitative restrictions, but subject to prevailing rate of custom duty.

Investment Banking relationship with company covered.

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

Motilal Oswal Securities Ltd. 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. Since the 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 In the ethanol seasonout of 80 cr litre contracted about The capacity is roughly distributed equally between private sector units and cooperative sector units.

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. Get notified whenever I post new article!