New Delhi: Hailing the recommendation by the Rangarajan Committee to decontrol the sugar industry, Indian Sugar Mills Association (ISMA) on Friday said the suggestions if adopted by the Centre would help the industry in achieving faster growth and attracting investments.
The Rangarajan Committee on Friday recommended deregulation of the sugar sector by giving freedom to mills to sell sugar in the open market.
"It's a very positive report. Industry welcomes it. If government accepts the report, sector will grow at a faster pace and there will be lot of investment at all levels including farmgate," ISMA Director General Abinash Verma told PTI when asked about his comments on the report.
Verma said the decontrol of the sector would be in the interest of all stakeholders, including farmers, millers and consumers.
The industry has been for a long time demanding the government do away with the systems of regulated release mechanism and levy sugar obligations.
Under regulated release mechanism, the Centre fixes the quantity of sugar that mills can sell in the open market and ration shops. The levy sugar system, on the other hand, stipulates the mills to sell 10 percent of their production to the government at below market price for ration shops.
"The sugar decontrol will lead to a stable and predictable environment," Verma said.
First Published: Friday, October 12, 2012, 14:14