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

Regional Disclosures outside India. Under the FRP system, the farmers are not required to wait till the end of commitete season or for any announcement of the profits by sugar mills or the Government. Central Government has abolished levy on sugar produce after 1st October, Regulated Release Mechanism This mechanism is not serving any useful purpose, and may be dispensed with.

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

In years of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to make timely payment of cane committtee to farmers. The more efficient millers will have a better module for increasing revenue. This document must not be acted on or relied on by persons who are not major institutional investors.

With the amendment of the Sugarcane Control Order, on Pricing of Other products The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry. 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in production and availability of sugar in the sugar seasonthe stock holding limit and turnover limits has been withdrawn with effect from There is a lot of control by the government both state and centre over x sugar industry. The compulsory packaging of sugar in jute bags has been relaxed further.


In the interim, the current system may continue.

This was held valid in a Supreme Court judgment in And just the converse of this, the sugar mills have to purchase sugarcane from reserved areas. 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.

This is the minimum price that they pay to the farmers for the sugarcane. There are installed sugar factories in the country as on fommittee Further, wherever and whenever a state discontinues area reservation, the Centre should remove the stipulation of a minimum distance between two mills.

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

The new system also assures margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills generate profit or not and is not dependent on the performance of any individual sugar mill. Nandakumarmember of the National Disaster Management Authority, a committee member.

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. 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 research analysts, strategists, or research associates principally responsible. Prime Minister had set up a committee under the chairmanship of Dr. Empowering the farmer to do better business. Unauthorized disclosure, use, dissemination or copying either whole or partial of this information, is prohibited. Committees under MahajanTutejaThorat and Nandakumar had similar recommendations.

This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Investment Banking relationship with company covered.

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

Further, in the ethanol seasonLOI has been issued for supply of Interest burden on this loan, for five years is borne by the Government through Sugar Development Fund. Motilal Oswal Securities Ltd. So the control by government at every stage is:.


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. The recipients of this report should rely on their own investigations. Any investment or sugsr activity to which this document relates is only available to major.

Based on the share so computed, additional payment, net of FRP already paid, would then be made to the farmer. This should, however, not be treated as endorsement of the views expressed in the report. 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.

Rangarajan Committee and Partial Decontrol of Sugar – General Knowledge Today

State-wise demand profile has also been projected, keeping in view distances, capacities and other sectoral demands. Give farmer option to trade with any mill. In reliance on the exemption from registration provided by Rule 15a-6 of the U. This was a guest post by Mr. Has no voice State government issues price Has most voice. Trade Policy As per the committee, trade policies on sugar should be stable. The committee has completed its task, suyar several rounds of deliberations, consultations with stakeholders, and discussion with Chief Ministers of major sugar-producing states.

Now the government control on commitee major aspects can be visualized easily. Such research analyst may not be associated persons of the U.

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