New Delhi: Industry chamber CCI Tuesday said that early implementation of the Rangarajan panel's recommendations on deregulation of the sugar industry will enable smooth transition and boost growth of the sector.
"Implementation of these recommendations at the onset of the season (October-September) will enable a smooth transition and would definitely ensure a buoyant growth of the sugar sector and the economy as a whole, more so the rural economy," Confederation of Indian Industry (CII) said in a statement.
It said "phased decontrol of the sugar industry will go a long way to achieve the sugar sector's full potential."
Last week, the panel, set up by the Prime Minister in January this year, under PMEAC Chairman C Rangarajan, released a report recommending scrapping of major government controls on the sugar sector to move towards the reform process.
"The government should implement these recommendations at the earliest....The industry has long been advocating decontrol of the sugar sector. The recommendations made by Rangarajan Committee will streamline all policy issues in the sugar sector to the best advantage of farmer, industry and consumers and will ensure a buoyant growth for the sector," CII Co-Chairman of Task Force on Sugar and Deputy Managing Director DCM Shriram Ajit Shriram said.
These recommendations will also lead to a stable supply of sugarcane and sugar, instead of the extreme swings we have seen for the last many years, he added.
According to the Rangarajan Committee's report, barring two key regulations with respect to fixing sugarcane price and sharing of 70 percent revenue by sugar firms with farmers, it has suggested giving freedom to mills to sell sugar in the open market and having a stable export and import policy.
The Rangarajan panel is third committee by the government to study reforms in the sugar sector. Suggestions of earlier panels -- Tuteja Committee and Thorat Committee -- have not been implemented yet.