Ramesh Chand panel to suggest solution for India’s sugarcane sector

The Indian government has formed a committee under former Niti Aayog member Ramesh Chand to address issues plaguing India's sugarcane sector. The panel's mandate includes suggesting corrective measures and policy changes to ensure fair returns to sugarcane farmers and determine whether the current statutory ex-mill price of sugar should be increased. The committee, led by Chand, comprises officials from various ministries, including agriculture, food, and consumer affairs, along with subject-matter experts.

The formation of the committee came after meetings with sugarcane farmers from Karnataka and Maharashtra, where concerns were raised by the farmers. The government had initially announced the committee's composition, which was supposed to include representatives from the central government, state governments, farmers' organizations, sugar mills, and subject-matter experts.

However, the final panel does not include these representatives, but it will consult with relevant stakeholders, including farmers, sugar mills, state governments, concerned ministries, research institutions, and experts.

The committee's primary focus will be to examine the demand for increased remunerative returns for sugarcane farmers, considering cultivation and input costs, along with other relevant factors. It will also look into the proposed revision of the Minimum Support Price (MSP) for sugar, taking into account production costs, market realizations, FRP increases, and the financial viability of sugar mills.

Additionally, the committee will review testing and reporting mechanisms and recommend measures for independent verification, accuracy, and transparency.

The committee's mandate also includes reviewing weighment practices, including calibration, inspection, and verification mechanisms to ensure the accuracy and transparency of farmers bringing their sugarcane to mills. It will assess deductions made for mechanically harvested sugarcane and evaluate the impact of current practices on cane prices paid to farmers. The committee will propose corrective and policy measures, specifying actions required by the central government, state governments, and other competent authorities.