What’s the present system of Sugar pricing control in India? What’re the new provisions suggested by noted economist ajan? How’ll. Report Summary. Report of the Committee on the Regulation of Sugar Sector in (Chairperson: C. Rangarajan) submitted a „Report on the. 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 advisory as at least three other such reports on decontrol haven’t been adopted. “The Rangarajan committee’s report is a positive move, but how it will be.

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Motilal Oswal Securities Ltd. This document must not be acted on or relied on by persons who are not major institutional investors. Act ofas amended the “Exchange Act” and interpretations thereof by the U. The sugar must be packaged in jute bags. The farmers must sell their produce to the nearest mill. Any investment or investment activity to which this document relates is only available to major. It also asked the government to rationalise the current issue price for TPDS sugar, which has not been revised for many years.

He said that there should be a linkage between the price of cane and sugar in the market as the industry had to suffer due to excessive hikes in the price of cane.

Remembering the earlier diagram of the sugar process and the government control, the Rangarajan committee report recommendations can be easily mapped. This is similar to many other committees formed by the government to recommend the sugar industry decontrol.

Committees under MahajanTutejaThorat and Nandakumar had similar recommendations. This was a guest post by Mr. October 20, Different types of Govt. decontorl

This report is intended for distribution only to “Major Institutional Investors” as defined by Rule 15a-6 b 4 of the Exchange Act and interpretations thereof by SEC henceforth referred to as “major institutional. President of the Kisan Jagriti Manch, Prof Sudhir Panwar said that for most farmers sugarcane is the main cash crop and an improved mechanism of cane price fixation should be worked out with present not being suitable.

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The committee has recommended that cane area reservation ultimately be phased out and contracting between farmers and mills allowed for enabling the emergence of a competitive market for assured supply of cane, in the interest of farmers and economic efficiency.

MOSt or any of its affiliates. A major recommendation of the committee relates to revising the existing arrangement for the price to be paid to sugar-cane farmers, which suffers from problems of accumulation of arrears of cane dues in years of high price and low price decontro farmers in other years. The more efficient millers sugaar have a better module for increasing revenue.

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. Post By Simply Decoded Posts.

This report is not directed or intended for distribution to or ranbarajan by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to.

A government commitee has favoured complete decontrol of the sugar industry, dispensing immediately with the levy sugar obligation and administrative control on non-levy sugar. Now, the Food Ministry has proposed to double the issue price to around Rs.

Rangarajan Sugar mills inflation. This report is not for public distribution and has been. Distance Mills must have a distance of 15kms between them.

Pay 70% of sugar value to cane farmers: panel

The committee has also recommended dismantling of the levy obligation for sourcing PDS sugar at a price below the market price. The levy savings is about crores. Export and import policy, it said, should not be guided by domestic availability. This will alert our cokmittee to take action Name Reason for reporting: India has million more poor: The committee said the system of levy sugar should be done away with.

Rangarajan Committee recommendations positive– Detailed Report

Also, the central government has prescribed a minimum radial distance of 15 km between any two sugar mills. Has no voice State government issues price Has most voice. Disclosure of Interest Statement. Get instant notifications from Economic Times Allow Not now.


So the control by government at every stage is: C Rangarajan Committee to resolve gas pricing, profit-sharing issues. A number of cascading import controls and export permits are used to achieve this. These controls are imposed after taking into account the domestic availability, demand and price of sugar-cane.

Constitutional, Statutory etc May 28, ISMA’s Abinash Verma too pointed out that release mechanism should be abolished and left to market forces as it was evident that most of the time the sugar directorate could not estimate the reqirement of the sweetner.

At the same time, he said, sugar should be treated like any other commodity as it has the same seasonal cycle and, therefore, curbs on it should be lifted. It was suggested that the cane price be fixed in relation to the input cost and the sale price of sugar and the price hence arrived should serve as a Minimum Refference Price for the whole country.

Promotion Order referred to as “investment professionals”. Prof Panwar also stressed on doing way the system of release mechanism of sugar produced in mills to make the industry financially competitive. Although delicensing removed some regulations in the sector, others still persist.

He said that the committee members seemed responsive to their suggestions and said that if the sector is decontrolled the sugar sector can grow rapidly bringing prosperity to farmers and expanding the industry. The research analysts, strategists, or research associates principally responsible. Putting proper system for remuneration.

This was held valid in a Supreme Court judgment in Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision.