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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GENERAL Sugar industry is an important agro-based industry that impacts rural livelihood of about 50 million sugarcane farmers and around 5 lakh reporh directly employed in sugar mills. The prices of the by-products should be market-determined with no earmarked end-use allocations.

Rangarajan Committee and Partial Decontrol of Sugar

Fri, Oct 12 This document must not be acted on or relied on by persons who are not major institutional investors. Committees under MahajanTutejaThorat and Nandakumar had similar recommendations. About 32 lakh farmers have been benefitted. 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.

An amount of Rs. 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. The committee has completed its task, after several rounds of deliberations, consultations with stakeholders, and discussion with Chief Ministers of major sugar-producing states.


Since the production subsidy scheme was withdrawn before time, the Central Government has decided to disburse the performance based production subsidy for cane crushed during sugar season till the tenancy of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 Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision.

They will be provided 1 kg of sugar per family per month. Other than that i. The capacity is roughly distributed equally between private sector units and committe sector units. Now the government control on the major aspects can be visualized easily. Let us understand the sugar producing process first.

Laxmikanth Hindi English Spectrum: Statement in this document.

Get notified whenever I post new article! Polo and therefore, may not be subject to NASD rule and NYSE Rule restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account. Keeping in view of production of sugar, stock ranfarajan and market price sentiments, the Government of India has withdrawn the custom duty on export of sugar vide notification no.

In addition second round of tender has been opened by OMCs for bidding for procurement of cr litre of ethanol under EBP. Compulsory Jute Packing May be dispensed repoort. The sugar must be packaged in jute bags. Rangarajan panel suggests dismantling levy obligation for ranharajan PDS sugar at price below market levels. Promotion Order referred to as “investment professionals”. In order to ensure that higher sugar recoveries are adequately rewarded and considering variations amongst sugar mills, the FRP is linked to a basic reportt rate of sugar, with a premium payable to farmers for higher recoveries of sugar from sugarcane.


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.

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 mill owners must compensate the farmers according to 2 different norms for giving them the sugarcane — FRP and SAP.

Prime Minister had set up a committee under the chairmanship of Dr.

Explained: Rangarajan’s Sugar Pricing formula for Mill Owners

Rangarajan, Chairman, Economic Advisory Council to the Prime Minister to look into all the issues relating to the deregulation committes the sugar sector. The recipients of this report should rely on their own investigations. With such a system in operation, states should not declare an SAP. The Government on 3. Empowering the farmer to do better business. Appropriate tariff instruments like a moderate export duty not exceeding 5 per cent ordinarily, as xugar to quantitative restrictions, should be used to meet domestic requirements of sugar in an economically efficient manner.

Pricing of Other products The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry. Motilal Oswal has entered into a chaperoning agreement with a U.

A scheme was notified on Can ease central subsidy tension. Has no voice State government issues price Has most voice.

There are installed sugar factories in the country as on The more efficient millers will have a better module for increasing revenue.