The Rangarajan Committee has recommended de-regulation of the sugar sector, by giving freedom to mills to sell sugar in the open market.

It also suggested revising the existing arrangement for providing better Fair and Remunerative prices to Sugarcane farmers at the time of cane purchase and payment of cane arrears accumulated over the years.

The Panel headed by C. Rangarajan that released its report in New Delhi today, recommended that farmers would be entitled to a 70 per cent share in the value of sugar and its by-products produced from the cane supplied farmers while the Sugar Mills would be entitled for 30 per cent.

Mr. Rangarajan said, the Fair and Remunerative Price can be revised on a half-yearly basis and the revenue sharing mechanism should be based on that.

The Panel has suggested the scrapping of State declared cane prices. Mr. C. Rangarajan also said, the existing subsidies will continue and the 30,000 crore rupees of Sugar subsidy will be given to the State Governments.

The Panel also recommended that the cane area reservation be phased out and contracting between farmers and mills be allowed for enabling competition in the market for assured supply of cane in the interest of farmers and economic efficiency.

The Commitee also suggested for doing away with the system of levy sugar, under which the mills are required to sell 10 per cent of their production to the government at below market price for ration shops. The report was submitted to the Prime Minister today.

Dr. Singh had set up an expert committee to examine issues related to decontrolling the sugar sector in January this year. India is the world's top sugar consumer and biggest producer after Brazil.