The Rangarajan Committee has recommended deregulation of the sugar sector, by giving freedom to mills to sell sugar in the open market. It also suggested revising the existing arrangement for providing better Fair and Renumerative Price (FRP) to sugar cane farmers at the time of cane purchase and payment of cane arrears accumulated over the years. The Panel headed by C. Rangarajan in its report released in New Delhi today recommended that farmers would be entitled to a 70 per cent share in the value of sugar and sugarcane by-products while the Sugar Mills would be entitled for 30 per cent. Mr. Rangarajan said, the FRP can be revised on a half-yearly basis and the revenue sharing mechanism should be based on that.

The Panel has suggested the scrapping of State Advised Price (SAP) for sugarcane. Mr. C. Rangarajan also said, the existing subsidies will continue and the 30,000 crore rupees of Sugar subsidy will be given to the State Governments.

The Panel also recommended that the cane area reservation be phased out and contracts between farmers and mills be allowed for competition in the market and for assured supply of cane in the interest of farmers and economic efficiency.

The Commitee also suggested for doing away with the system of levy sugar, under which the mills are required to sell 10 per cent of their production to the government at below market price for ration shops. The report was submitted to the Prime Minister today. Dr. Singh had set up an expert committee to examine issues related to decontrol of sugar sector in January this year. India is the world's top sugar consumer and biggest producer after Brazil.

Indian Sugar Mills Association, ISMA has hailed the recommendation of Rangarajan Committee to decontrol the sugar industry. ISMA Director General Abinash Verma said, the decontrol of the sector will be in the interest of all stakeholders, including farmers, millers and consumers. He said, the sugar decontrol will lead to a stable and predictable environment.

AIR correspondent reports that the current annual output of Indian sugar industry which is worth about 80,000 crore rupees can grow at double digits and double its worth to one lakh 60 thousand crore rupees over the next five to ten years. De-regulation is likely to reduce the cyclical trend of cane production too.

With consolidation and contracts between mills and farmers, there will be more sustained cultivation of cane across years. Also mills will be able to manage their cash flows better and reduce inventory costs, which in the past have led to delay in payment to farmers. Guaranteed payments to farmers and a fair return for their produce are more likely to reduce the volatility in cane acreage and consequently sugar production and prices.

In Uttar Pradesh, the sugarcane farmers under the banner of Rashtriya Kisan Mazdoor Sangathan, RKMS, have decided to boycott the Reservation meetings for the coming sugarcane season, to be held tomorrow at Lucknow. The Convenor of the Sangathan, Congress leader BM Singh told our Allahabad Correspondent that he has written a letter to the Chief Minister about the decision of the farmers. He said that farmers have taken the decision in protest against the government which has failed to fulfill its assurances and directives of the Supreme Court and High Courts.  Mr. Singh said that a Mahapanchayat of sugarcane farmers is being held at Kila-parikshat garh in Meerut on the 16th of this month, to discuss future course of action to get their demands implemented.

Announcement

he Centre has decided to release 45 lakh tonnes of non-levy sugar for the 2nd quarter of July to September this year. An official release says, the sugar factories have to deliver the entire quantity of the sweetener within the validity period of the release with the condition that they sell not less than 25 per cent of the quarterly quota in each month of the quarter. Besides this, the government has also released 4.64 lakh tonnes of levy sugar quota for the same period.

The government has decided to remove curbs on sugar exports, allowing producers to benefit from higher prices in overseas markets. Commerce minister Anand Sharma has said that notification to this effect will be issued in due course. Indian Sugar Mills Associations have said the country is likely to produce 26 million tonnes of sugar, while consumption is expected to be 22 million tonnes. 
The government also removed the minimum export price on onions for the next two months.The government has decided to form a new panel headed by C Rangarajan, chairman of Prime minister's economic advisory council to consider a decision to allow supply of an additional 15 million tonne of foodgrains through the Public Distribution System.The government, on Monday decided to allow exports of cotton. Our correspondent reports, some experts feel that sugar prices should be freed from state control. Presently, states have the power to regulate price of sugar. India is the biggest consumer and second biggest producer of sugar and controls the industry through procurement prices set by both centre and the state governments, to keep its prices stable.

The government today said that the growth of sugar industry in the country is critical for rural development as 50 million farmers and their families are dependent on it. Addressing the 41st session of the International Sugar Council in New Delhi, the Finance Minister Mr Mukherjee said that the industry has supported employment in various ancillary activities. 

Mr. Mukherjee said that government has taken a number of steps to revitalise the sugar industry so that it is in a position to reap the advantages of free and growing market. The minster said that the government has been seeking to stablize sugar prices by moderating volatility during scarce and surplus domestic sugar seasons. 

Mr Mukherjee stressed the need to ensure that the sugar sector has access to the latest technology for enhancing production and productivity. He urged the Council to take necessary steps for collaborative research and development so that entire sugar industry across the world benefits from it.

Mr Mukherjee emphasised the importance of global co-operation in research and development of sugar technologies to unlock the full potential of the industry in developing countries.

Speaking on the ocassion Food and Consumer Affairs minister K V Thomas said that the main concern of the government is that sugarcane farmers get due share of their labour time and energies invested by them on the field.

The government allowed additional one million tonnes of sugar exports in view of surplus production. The move will help mills clear mounting cane arrears, that have reached 8,409 crore rupees till February, to farmers. The decision to allow exports was taken yesterday by an Empowered Group of Ministers, EGoM, headed by Finance Minister Pranab Mukherjee. 

The sources said that the food ministry will frame new modalities for expediting sugar exports as the country has 1.64 million tonnes of surplus sweetener. The EGOM also decided to continue exports of wheat and non-basmati rice, which was allowed under Open General Licence in September last year, on record production.
India is the world's second-largest producer of sugar and is also the biggest consumer