Cabinet okays decontrol of sugar sector - NDTV

The Cabinet Committee on Economic Affairs on Thursday decided to decontrol the Rs. 80,000 crore sugar industry. In October last year, a panel headed by Dr C Rangarajan, the Chairman of the Prime Minister's Economic Advisory Council, had recommended the removal of two control measures - the regulated release mechanism and the levy sugar obligation -- immediately and of other restrictions gradually. At present, the sugar sector is controlled from production to distribution. Through the release mechanism, the Centre fixes the sugar quota that can be sold in the open market. Under the levy system, it asks mills to contribute 10 per cent of their output to run ration shops costing the industry Rs. 3,000 crore a year. The government currently buys sugar from mills for about Rs. 20 per kg and sells to ration card holders for Rs. 13.50 per kg. Under the decontrolled regime, the sugar requirement of states for the public distribution system (PDS ) will be met through purchases from the open market and the states will be given a fixed subsidy based on their existing allocations. The export and import of sugar will be regulated through an appropriate tariff structure. With inputs from agencies via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEcQunPyYGMNfjR0X3B_3lOEg_zwg&url=http://profit.ndtv.com/news/economy/article-cabinet-okays-decontrol-of-sugar-sector-320474

Put the internet to work for you. via Personal Recipe 2910127