In an interview to CNBC-TV18, Dhruv M Sawhaney, chairman and managing director, Triveni Engineering says it is an absolutely incredible report. "This report will cater to all three sections—farmers, industry and consumers. All the recommendations are very forthright in bringing this sector into the main stream," he adds.
Below is the edited transcript of his interview with CNBC-TV18's Latha Venkatesh and Ekta Batra.
Q: What are your first thoughts on the report?
A: I think this is an absolutely incredible report. This report will cater to all three sections—farmers, industry and consumers. All the recommendations are very forthright in bringing this sector into the main stream.
The North Indian farmers' productivity, as Rangarajan said, hasn't really gone up. He has correctly recommended that the Rs 3000 crore subsidy should be passed on by the center to the states.
Q: This 70% of profit sharing, you won't have any qualms doing it because that will go from your pocket.
A: Absolutely not. We are currently paying much more. In the last two years, I think we paid over 80%. I am 100% for it. I think the restriction on everyone paying in time, within 14 days is also extremely important. The industry must pay the farmer, especially the small and marginal farmer, on time.
The two stage payment will allow equal distribution of cane price. It's a very important which Ranagrajan probably has in his report. Right now, the first few farmers get 100% and the last few farmers have to wait till long time. So, this two stage payment is very good. It's already being done in Maharashtra.
Q: What are your thoughts with regards to the levy quota removal? Can you just take us through the broad points in terms of the positive outcomes from that, if in case it does come through as a recommendation?
A: India is probably the only country in the world that has this restriction. Without this, now we will have much more stable regime of sugar prices. Both the investors and the farmers will be able to do much better. This also will help productivity. Most of the levy sugar is leaking. It doesn't reach the people that it wants to go to. So, it's something that is really not in keeping with the objective of the government.
Secondly, they have release mechanism, which is coupled with this levy sugar, which Rangarajan has also talked about, is fine to be done away with. There is no other agriculture commodity that has it.
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