The Rangarajan Committee has recommended revising the existing arrangement for providing better Fair and Renumerative prices to Sugar cane farmers and payment of cane arrears accumulated over the years. The Panel headed by C.

Rangarajan that released its report in New Delhi today has recommended that farmers would be entitled be entitled to a 70 per cent share in the value of sugar and by products produced from the cane supplied by each farmer.

The Sugar mills would be entitled to 30 per cent of the revenue. It has 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 Committee has also suggested 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 running ration shops.

The report was submitted to the Prime Minister today. Prime Minister Manmohan Singh had set up an expert committee to examine issues related to decontrolling the sugar sector in January this year.