National
Centre clears decontrol of sugar
By Our Special Correspondent
NEW DELHI, FEB. 5. The Centre today cleared in principle the complete decontrol of sugar, removed 12 items from the purview of the Essential Commodities Act and removed restrictions on the free inter-State movement of foodgrain including wheat, paddy/rice, coarse-grains, sugar, edible oils and oilseeds.
The decisions were taken at a meeting of the Union Cabinet chaired by the Prime Minister, Atal Behari Vajpayee, here today.
Decontrol of sugar, based on Mahajan Committee recommendations, would be effective after the commencement of futures trading in the commodity from the next financial year. Decontrol would remove the present obligation of 15- per cent levy sugar on the industry and do away with the quarterly release quota announced by the Government.
Of the 29 items at present governed by the Essential Commodities Act for control of the production, supply and distribution, 12 will be removed from its purview. These include cement, textile machinery, textiles made from silk, yarn made from wool, cable and wares and general lighting appliances. A notification to this effect will be issued shortly.
The items that will continue to be governed by the Act include cotton and woolen textiles, raw cotton either ginned or unginned, cotton seed, raw jute, jute textiles, yarn wholly-made from cotton.
The decision is governed by the liberalised economy and the comfortable food situation which calls for removal of restrictions such as licensing of dealers, limits on stocks and control on movement as it only hampers growth of farm sector and promotion of food processing industries.
Facilitating free trade and movement of foodgrain would enable farmers to get best price for their produce, achieve price stability and ensure availability of foodgrain in deficit areas.
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