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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Statement in this document. There is no reservation sjgar 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.
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 sugwr a national market and better prices for this valuable by-product as well as improved efficiency in its use. Restriction on movement of ethanol and levying of taxes and duties on it by State Governments continue to be commigtee impediment in successful implementation of EBP.
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.
This research report does not constitute an offer, invitation or inducement. Rangarauan 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.
A major recommendation of the committee relates to revising the existing arrangement for committee 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 farmers in other years. Unauthorized disclosure, use, dissemination or copying either whole or partial of this reporg, is prohibited. The prices of the by-products should be market-determined with no earmarked end-use allocations.
So the control by government at every stage is:. Other than that i.
Your email address will not be published. There should be no quantitative or movement restrictions on by products like molasses and ethanol. There should be no regulatory hurdles preventing sugar mills from selling their surplus power to any consumer. The mill owners must compensate the farmers according to 2 different norms for giving them the sugarcane — FRP and SAP.
Rangarajan Committee and Partial Decontrol of Sugar – General Knowledge Today
Accordingly, FRP for sugar season has been fixed at Rs. And just the converse of this, the sugar mills have to purchase sugarcane from repprt areas. This report is intended for distribution to institutional investors. In the ethanol seasonout of 80 cr litre contracted about Rangarajan panel suggests dismantling levy obligation for sourcing PDS sugar at price below market levels.
About 32 lakh farmers have been benefitted. Let us understand the sugar producing process first. Ltda sugar broker that also exports. In years of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to make commlttee payment of cane price to farmers. GENERAL 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 yearethanol supplied for blending was only 38 crore litres, whereas inunder the rangaeajan EBP supplies increased to 67 crore litres.
Double stage strategy to have better cash flow to mills. 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.
[Economy] Sugar Pricing and Decontrol, Rangarajan Committee, FRP vs SAP meaning, issues, explained
Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision. However, getting the recommendations off the ground may be a long process, Rangarajan and the other members of the committee said, as the report needs to be cleared by the cabinet and other ministries as well.
States have been requested to consider the recommendations for implementation as deemed fit. 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 Based on the share so computed, additional payment, net of FRP already paid, would then be made to the farmer. Levy sugar may be dispensed with.
Conclusion to all the UPSC aspirants: Appropriate tariff instruments like a moderate export duty not exceeding 5 per cent ordinarily, as opposed to quantitative restrictions, should be used to meet domestic requirements of sugar in an economically efficient manner.
A scheme was notified on Crops and Farmer Stage 2: Pricing of Other products The other products such as Molasses, Bagasse, Press Mud are very useful side products of sugar industry.
So most probably these recommendations will also bite the dust like others. The amended provisions rangraajan the Sugarcane Control Order, provides for fixation of FRP of sugarcane having regard to the following factors: