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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Crops and Farmer The farmers must sell their produce to the nearest mill. 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 Act ofas amended the “Exchange Act” and interpretations thereof by the U.

In order to ensure that higher sugar recoveries are adequately rewarded and considering variations amongst sugar mills, the FRP is linked to a basic rangarajsn rate of sugar, with a premium payable to farmers for higher recoveries of sugar from sugarcane. 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.

Rangarajan Committee and Partial Decontrol of Sugar

Accordingly, the Central Government has decided that the existing system of sugar distribution through Rabgarajan may be continued as per the following: This research report does not constitute an offer, invitation or inducement. To see this page as it is meant to appear please use a Javascript enabled browser. This was held valid in a Supreme Court judgment in MOSt or any of its affiliates. As per the committee, trade policies on sugar should be stable.

To fulfill the votebank issues as sugarcane farmers form a large votebank.

In the interim, relort current system may continue. The committee has also recommended dismantling of the levy obligation for sourcing PDS sugar at a price below the market price. 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.


Rangarajan Committee and Partial Decontrol of Sugar – General Knowledge Today

The Rangarajan panel has submitted the report to Manmohan Singh and it will now be examined by the food ministry, after which it will go to the Cabinet. 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: Laxmikanth Hindi English Spectrum: 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.

There should be no quantitative or movement restrictions on by products like molasses and ethanol. Instead, pass on the subsidy to state government, which can buy the sugar from the market and give it subsidized. Sugarr 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 The levy savings is about crores.

Empowering the farmer to do better business. Further, in the ethanol seasonLOI has been issued committde supply of The de-regulation of the sugar committed 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.

Mill distance Do away with minimum distance between mills. The information contained herein is based on publicly available data or other sources believed to be reliable. Restriction on movement of ethanol and levying of taxes and duties on it by State Governments continue to be an impediment in successful implementation of EBP.

Other than that i. The report was submitted to the Prime Minster on In the ethanol seasonthe ethanol supply has been historically high and has reached crore litres achieving 4. Nandakumarmember of the National Disaster Management Authority, repkrt committee member. Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the Government.


Pay 70% of sugar value to cane farmers: panel

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. This is the minimum price that they pay to the farmers for the repogt.

With the amendment of the Sugarcane Control Order, on 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 So the control by government at every stage is: Even the non-levy sugar faces restrictions on how much must be released in the market, with the objective of keeping prices under check.

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.

The mill owners must compensate the farmers according to 2 different norms for giving them the sugarcane — FRP and SAP. Trade Policy As per the committee, trade policies on sugar should be stable.

Investment Banking relationship with company covered. So the control by government at every stage is:. Let us understand the sugar producing process first. 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.