Committee to examine deregulation of sugar sector
The government has set up a seven-member expert committee to examine all issues related to de-regulation of the sugar sector, following demands from the industry.
The panel, constituted by Prime Minister Manmohan Singh on Friday, will be headed by the chairman of his Economic Advisory Council, C Rangarajan. “The Committee will look into all issues relating to de-regulation of the sugar sector,” said a statement issued by the government.
Although, no deadline has been set, the panel has been asked to complete the task “as early as possible” and submit its recommendations to the Prime Minister.
The Ministry of Consumer Affairs, Food and Public Distribution has been asked to provide necessary support to the panel. The panel has been empowered to take views of experts and academics on this issue.
The committee will comprise secretaries of the Department of Food and Public Distribution and Department of Agriculture, Chief Economic Adviser in the Ministry of Finance Kaushik Basu, National Disaster Management Authority member Nand Kumar and Commission for Agricultural Costs and Prices (CACP) chairman Ashok Gulati. Economic Affairs Committee Secretary K P Krishnan will the convener.
India is largest producer of sugar in the world and comes second to Brazil in sugarcane production. The sugar industry here, right from production to distribution, is controlled by the government.
Earlier this month, delegations from Indian Sugar Mills Association and National Federation of Cooperative Sugar Factories Limited had met Finance Minister Pranab Mukherjee seeking partial decontrol, including freedom to sell sugar in the open market.
