The suggestion from the Commission for Agricultural Costs and Prices to introduce dual pricing of sugar is unlikely to resolve the recurring financial woes. Do you agree with this view? Comment (200 Words)
Refer - Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· A suggestion was made in 2017 by the National Federation of Cooperative Sugar Factories, citing the differential rates for electricity supply to the industrial and domestic sectors.
· Currently, the sugar industry is having a good run for several reasons. Exports have turned feasible, thanks to government subsidy and a spike in international prices. Realisations from domestic sales of sugar and its byproducts, notably ethanol, have also improved.
· The uncertainty on this count arises also because the official sops are neither limitless nor unending. Besides, the sugar sector is notorious for its cyclic ups and downs.
· There is also another disquieting dimension of the recent policy modifications, especially those concerning ethanol production.
· The permission for converting sugarcane juice and sugar syrup directly into alcohol, without making any sugar, and fixing higher prices for such ethanol can be a case in point.
· Thus, instead of further complicating the matters through dual pricing, it would be far better to dig up the report of the Rangarajan committee on sugar, submitted in 2012, and implement the prudent pricing system mooted by it.
· The proposed benefit sharing formula envisages apportioning 70 per cent of the revenue earned by sugar mills from the sale of sugar and its byproducts to the cane growers.
· The objective is to link the prices of sugarcane with those of sugar and its byproducts. This would, in turn, allow the output of both sugarcane and sugar to be determined by market dynamics and stave off scarcities and gluts. Most importantly, it would safeguard the interests of all stakeholders — cane farmers, sugar industry, traders and consumers.
MURALIDHARAN 5 years
Kindly review!!
IAS Parliament 5 years
Good attempt. Keep Writing.
HB 5 years
PLEASE REVIEW
IAS Parliament 5 years
Problems faced by sugar industry is not needed. Focus must be on dual pricing of sugar. Keep Writing.
Shantanu tiwari 5 years
Please review
IAS Parliament 5 years
Information about sugar industry, FRP are not needed. Try to elaborate on dual pricing. Keep Writing.
Renuka 5 years
Kindly review
IAS Parliament 5 years
Good attempt. Try to underline key points. Keep Writing.
