Prime Minister Manmohan Singh has constituted an Expert Committee to look into all the issues relating to ‘de-regulation' of the sugar sector.
Headed by C. Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister, the Committee has been requested to complete its task as early as possible and give its recommendations to the Prime Minister.
The sugar industry has been demanding de-control of the sector on the plea that the mandatory requirement of selling 10 per cent of production at below-cost rates for supply to the ration shops is crippling it.
Another key demand is to do away with the system under which the Food Ministry decides on the quantity of the sugar that can be sold in the open market every month. According to industry estimates, mills incur a loss of about Rs. 2,500-3,000 crore on account of the levy obligation.
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