Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan on Friday called for freeing ethanol and molasses from the state control in the larger interests of the farmers and sugar mills. These two are under the control of the respective state governments and there is a need to take an urgent decision in this regard, he said.
Speaking at a discussion on sugar sector reforms, organised by Consortium of Indian Farmers' Associations and Karnataka Sugarcane Growers Association, here, he said, "I am glad that the Central government has accepted many of our recommendations on sugar sector decontrol. There are many other recommendations that need to be looked into immediately. Ethanol and Molasses are presently under the control of state governments and they should move towards freeing them."
He said the state governments have a greater say in the control of these two by-products. In case of ethanol, the pricing should be left to the market. "There should be no allocation as far as end users are concerned like chemical industries or oil marketing companies. They should all bid for whatever price is derived at the market place," he said.
The state governments should also look at easing restriction on the movement of molasses from one state to other, he said.
"Sugar sector is a complex sector and had lots of controls on it at various levels. Now, the Central government has accepted some of our recommendations. But, there is still need to accept many others, which requires state governments to act," he added.
