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

Crops and Farmer Stage 2: This should, however, not be treated as endorsement of the views expressed in the report. The recipients of this report should rely on their own investigations. There is a lot of control by the government rangarjan state and centre over the sugar industry.

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

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. Local consumption is pegged at The report was submitted to the Prime Minster on 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. MOSt or any of its affiliates or. An amount of Rs.

Ethanol is an agro-based product, mainly produced from a by-product of the sugar industry, namely molasses. This will free the industry from the burden of a government welfare programme, and indirectly benefit both the farmer and the general consumer since the industry passes on the cost of levy mechanism to farmers and consumers.

Mill distance Do away with minimum distance between mills. The committee has completed its task, after several rounds of deliberations, consultations with stakeholders, and discussion with Chief Ministers of major sugar-producing states.

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.


Recommendations Remembering the earlier diagram of the sugar process and the government control, the Rangarajan committee report recommendations can be easily mapped. In reliance on the exemption from registration provided by Rule 15a-6 of the U. 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 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.

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 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.

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

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

Let us understand the sugar producing suyar first. 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: Members on the committee were Shri T.

Rangarajan panel suggests dismantling levy obligation for sourcing PDS sugar at price below market levels. The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry.

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

Om 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 rangzrajan in other years. Your browser either doesn’t support Javascript or you have it turned off.

This research report does not constitute an offer, invitation or inducement. In order to keep the prices suvar 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 In respect of molasses, the committee favours free movement and dismantling of end-use based allocation quotas that are in vogue in several states, to enable creation of a national market and better prices for this valuable by-product as well as improved efficiency in its use.


States should be allowed henceforth to fix the issue price of PDS sugar, while the existing subsidy to rangaraajan for PDS sugar transport and the difference between the levy price and the issue price would continue at the existing level, augmented wugar the current level of implicit subsidy on account of the difference between the levy price and the open market price.

In addition second round of tender has been opened by OMCs for bidding for procurement of cr litre of ethanol under EBP.

This report is intended for distribution to institutional investors. The Ethanol Blending Programme EBP seeks to achieve blending of Ethanol with motor comittee 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. So the control by government at every stage is: Can ease central subsidy tension.

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. In the interim, the current system may continue. 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 and Markets Act Financial.

Rangarajan Committee and Partial Decontrol of Sugar

So the control by government at every stage is:. Now the government control on the major aspects can be visualized easily. Market Ease the market control of government on export and import.

Laxmikanth Hindi English Spectrum: 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 ports of different zones including 3 lakh MT from South Zone ports. Other than that i. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision.