26 NOV, 2012, PTI
NEW DELHI: The Centre today informed Parliament that it has sought views of state governments on recommendations made in the Rangarajan report on decontrol of the sugar sector.
Sugar is a regulated sector in the country. The sector is controlled by the government right from production through marketing of the commodity.
"The recommendations of the committee (headed by PMEAC Chairman C Rangarajan) are under consideration of the government. Some cane farmers have supported the proposal. The views of state governments have been invited," Food Minister K V Thomas said in a written reply to the Rajya Sabha.
In the report, the committee has recommended removal of levy obligation on sugar mills. It has further suggested that states which want to provide sugar through ration shops may henceforth procure it from the market directly according to their requirement and may also fix the issue price, he said.
Barring two key regulations with respect to fixing sugarcane price and sharing of 70 per cent revenue by sugar firms with farmers, the Rangarajan report has suggested scrapping of major government controls on the sugar sector as part of the reform.
It has suggested giving freedom to mills to sell sugar in the open market and removal of obligation on part of mills to supply 10 per cent of sugar at cheaper rate to the government to meet the ration shops demand.
In the long term, it has recommended a stable export and import policy besides doing away with the cane area reservation and minimum distance criteria between sugar mills and removal of controls on by-products like molasses.
The industry has been demanding immediate withdrawal of some of the controls saying it would help achieve higher growth of 15-20 per cent and boost investment into the sector.
The Rangarajan panel is not the first committee set up by the government to study reforms in the sugar industry. Recommendations of the Tuteja Committee and Thorat Committee have not yet been implemented.
NEW DELHI: The Centre today informed Parliament that it has sought views of state governments on recommendations made in the Rangarajan report on decontrol of the sugar sector.
Sugar is a regulated sector in the country. The sector is controlled by the government right from production through marketing of the commodity.
"The recommendations of the committee (headed by PMEAC Chairman C Rangarajan) are under consideration of the government. Some cane farmers have supported the proposal. The views of state governments have been invited," Food Minister K V Thomas said in a written reply to the Rajya Sabha.
In the report, the committee has recommended removal of levy obligation on sugar mills. It has further suggested that states which want to provide sugar through ration shops may henceforth procure it from the market directly according to their requirement and may also fix the issue price, he said.
Barring two key regulations with respect to fixing sugarcane price and sharing of 70 per cent revenue by sugar firms with farmers, the Rangarajan report has suggested scrapping of major government controls on the sugar sector as part of the reform.
It has suggested giving freedom to mills to sell sugar in the open market and removal of obligation on part of mills to supply 10 per cent of sugar at cheaper rate to the government to meet the ration shops demand.
In the long term, it has recommended a stable export and import policy besides doing away with the cane area reservation and minimum distance criteria between sugar mills and removal of controls on by-products like molasses.
The industry has been demanding immediate withdrawal of some of the controls saying it would help achieve higher growth of 15-20 per cent and boost investment into the sector.
The Rangarajan panel is not the first committee set up by the government to study reforms in the sugar industry. Recommendations of the Tuteja Committee and Thorat Committee have not yet been implemented.
No comments:
Post a Comment