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Indicating that it is serious about decontrolling the sugar sector, the Government has set up high-level expert committee under Dr C. Rangarajan, Chairman, Prime Minister's Economic Advisory Council (EAC), to examine related issues.
The six-member committee will look into all the issues relating to de-regulation of the sugar sector and has been asked to give its recommendations to the Prime Minister at the earliest. Other members on the panel include Chief Economic Advisor, Dr Kaushik Basu, CACP chairman Dr Ashok Gulati, the Secretaries of Agriculture, Food and Public Distribution, Secretary EAC, Dr K.P. Krishnan and the former secretary of Food and Public Distribution, Mr Nand Kumar who is presently a member of National Disaster Management Authority.
The Committee has been empowered to involve such experts, academics as required as special invitees. The Ministry of Consumer Affairs, Food and Public Distribution has been requested to provide the necessary support to the Committee in discharging its functions, a statement from the Prime Minister's Office (PMO) said.
Following the announcement, almost all sugar stocks surged on the bourses to end with significant gains at the end of the day. Triveni Engineering and Industries Ltd gained maximum of around 12 per cent to close at Rs 20.29. Shree Renuka ended higher by 6.66 per cent at Rs 39.25, Balrampur Chini gained 6.5 per cent at Rs 47.65 among others.
The Indian Sugar Mills Association (ISMA) welcomed the PMO's move and hoped that the panel would submit its report quickly. “I hope this committee will give positive recommendations for the benefit of industry as well as farmers,” said Mr Abinash Verma, Director General, ISMA.
The sugar industry has been demanding decontrol of the sector for some time now including doing away with the obligation to sell the sweetener at lower rates through the public distribution system. The industry has also asked the Government to approve further exports of the commodity to take advantage of the high global prices.
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