Ramesh Chand Task Force recommends linking sugarcane prices to sugar rates
Ramesh Chand task force by Niti Aayog has recommended to link sugarcane prices to sugar rates. The task force highlighted that it is essential to keep the industry in a good financial health. In its report, the task force has recommended for a one-time increase in the minimum sugar price at Rs 33 per kg. This report of the task force was finalized in March 2020 and published on August 20.
Ramesh Chand Task Force Report on Sugarcane Prices
- As a major point, the panel recommended to link sugarcane prices to sugar rates.
- Areas under sugarcane cultivation should be shifted to less water-intensive crops by providing incentives to farmers. At present area for sugarcane cultivation is about 3 lakh hectares and it yields about 20 lakh tonnes of sugarcane.
- The panel suggested that the incentive to farmers from moving to less water-intensive crops should be around Rs 6,000 per hectare.
- Revenue Sharing Formula (RSF) must be introduced to help farmers in receiving fair prices for their sugarcane produce. A price stabilisation fund must also be introduced.
- The minimum support price (MSP) of sugarcane must be reviewed in six months.
- The panel also recommended levying a cess of Rs 50 per quintal on sugar for a period of 3 years to add about Rs 4,500 crore to the fund which could be used to improve financial conditions of farmers.
National Institution for Transforming India or NITI Aayog is the think tank of the government of India which was formed on January 1, 2015. The Chairperson of the Aayog is the Prime Minister and the Vice chairperson at present is Rajiv Kumar.