Soon, profit-sharing system for cane-growers: Rangarajan

C Rangarajan, chairman of the prime minister’s economic advisory council, has advised the national sugar committee to work out a revenue-sharing formula for sugarcane growers.

After meeting chief minister DV Sadananda Gowda, he said there were many regulations in the sugarcane processing sector, including price regulation. “If the sugar industry makes profit above a certain level, it can be shared with farmers,” he said.

“Apart from giving a minimum price, profits can be shared between sugarcane growers,” he added.

Rangarajan said the decision to raise excise duty and services tax was appropriate, adding: “We need to boost the economy. If targets in public sector infrastructure such as coal, power, road, railways are fulfilled, they will act as a stimulant for private sector investments.”

“The overall growth of industrial production in 2012 will be close to what we indicated—about 3.8%. The government is setting up a committee to examine the index of industrial production,” he said.