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14/03/2019 - Government Policies

iasparliament
March 14, 2019
6 days
597
3

The productivity of sugar industry can be improved by focusing on basic reforms like deregulation, rather than providing bailout packages. Examine  (200 Words)

Refer - Business Standard

Enrich the answer from other sources, if the question demands.

 

 

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IAS Parliament 4 days

KEY POINTS

Existing flaws in bail out packages

·        The loans allocated for setting up new ethanol manufacturing plants, including standalone distilleries, to augment the overall ethanol production capacity.

·        The objective is to encourage the use of B-heavy molasses (which still has some extractable sugar) and sugarcane juice to make ethanol, sacrificing the main product sugar.

·        The long-term implications of direct conversion of cane juice into alcohol are truly worrisome. It would tend to encourage larger cultivation of this water-guzzling crop which can be ecologically disastrous. India, being short of both land and water, can ill-afford to devote its prime agricultural land with assured irrigation facilities for biofuel production.

·        Existence glut situation in markets because of restrictions in exports. 

Needed basic reforms

·        The sustainable solution to the sugar sector’s persistent troubles lies, indeed, in carrying out basic reforms leading to total deregulation and decontrol of this industry.

·        These included a revenue sharing-based pricing formula to link cane prices with those of sugar. This would let the production of both sugarcane and sugar to respond effectively to market demand.

·        This helps in moderating shortages and gluts without hurting the interests of any stakeholder in this sector, be it the cane grower, sugar producer or consumer.

·        Ethanol, which is a plentiful product in the sugar manufacturing process and is blended with petrol, can be a vital revenue earner for the mills.

·        Reducing the sugar output will increase the sugar prices, paying of cane arears.

Sandeep 5 days

Kindly review thanks

IAS Parliament 5 days

Try to include the disadvantages of producing ethanol from sugarcane juice. Keep Writing.

Raj 5 days

Kindly Review. Thanks!!

IAS Parliament 5 days

Try to include flaws in the existing bail out packages. Keep Writing.

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