Solutions of Sugar Related Issues
The government set up a committee in 2012 under Dr. C Rangarajan to make recommendations regarding the deregulation of the sugar industry. Some of the major recommendations were:
- Removal of ban on sugar export and all quantitative restrictions.
- Removing the requirement of the minimum distance between mills as this was leading to a monopoly by mill owners.
- No restrictions regarding the sale of by-products.
- Most of the recommendations were accepted and the sugar industry was deregulated. Measures were taken to improve the financial health of mills and improve the cash flow so that farmers could be paid on time.
- Both private and public sector participation was encouraged.
Based on the recommendation of the Rangarajan committee the CACP (Commission for Agricultural Costs and Prices) recommended a Fair and Remunerative Price (FRP) for sugarcane. The FRP was to be decided by the CACP after consulting all stakeholders. States were allowed to set a State Advised Price (SAP) which could be higher than the FRP. The Biofuel policy of 2018 has also played a role. It encourages the diversion of surplus toward the production of ethanol which can be used as a biofuel. This indirectly helps support sugar prices.
All these measures have been undertaken to ensure that sugarcane farmers are able to get a better price for their products. However, the government has also introduced measures to make sugar mills more effective so that they may benefit too. Many states have also adopted a revenue-sharing system. The government has also initiated research on how to improve the productivity of this crop.
In conclusion, one can say that the sugarcane industry is a very important one as it employs a large population and plays an important economic role. This industry has been facing certain problems but the government is aware of these challenges and has taken steps to strengthen the industry. More steps need to be taken to increase productivity and reduce costs and research is being done on the best possible options.
Sugarcane and Sugar Industry in India
Sugarcane is the second largest cash crop in India after cotton. It is a perishable, heavy raw material that cannot be transported for long distances. It is primarily used to produce sugar. However, the by-products of this process are used in various other industries as well. India is the second largest producer of sugar worldwide and is tipped to soon overtake Brazil, the number one producer. This agro-based industry is important for multiple different reasons.
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