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Now the government control on the major aspects can be visualized easily. So the control by
government at every stage is:
1. Distance
1. Pricing of
Sugar
1. Pricing of
Other
products
The other products such as Molasses, Bagasse, Press Mud are very
useful side products of sugar industry. Their remuneration to the farmer is
not fixed and varies with the time.
1. Levy of
Sugar
The mill owners must give 10% of their production to the central
government which they use to supply to the state governments for their
state Public Distribution Systems (PDSs).
1. Packaging
The sugar must be packaged in jute bags. (this is done to promote labour
intensive jute industry.)
1. Market
The market is also heavily government controlled. The export and import
of sugar is decided by the government depending upon the domestic
demand.
Before going into the recommendations of the committee let us look at the difference
between FRP and SAP.
FRP
SAP
Generally lower.
When the state government issues its SAP then the mills in the state are bound to pay by that
amount only. This was held valid in a Supreme Court judgment in 2009.
Rangarajan Committee:Recommendations
Remembering the earlier diagram of the sugar process and the government control, the
Government
Control
Sugar
crop area
Mill
distance
Pricing of
Sugar
Recommendation
Remarks
To enable competition.
Packaging
Levy of
Sugar
Market
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