C Rangarajan Committee (2012)

Prime Minister had set up a committee under the chairmanship of Dr. C. Rangarajan, Chairman, Economic Advisory Council to look into all the issues relating to the deregulation of the sugar sector. The committee has completed its task, after several rounds of deliberations, consultations with stakeholders, and discussion with Chief Ministers of major sugar-producing states and submitted to the Prime Minster on 2012.

Recommendations: Committee recommended no more outright bans on sugar exports.

• The Committee recommended that the distance norm be reviewed as the central government has prescribed a minimum radial distance of 15 km between any two sugar mills which often causes virtual monopoly over a large area to the mills owner.
• Prices should be market determined and there should be no restrictions on sale of by-products. States should also undertake policy reform to allow mills to harness power generated from bagasse.
• There should be appropriate tariffs so that there can be abolition of the quantitative controls on export and import of sugar.
• Remove the regulations on release of non-levy sugar. Removal of these controls will improve the financial health of the sugar mills. This, in turn, will lead to timely payments to farmers and a reduction in cane arrears.