The Levy Sugar Price Equalisation Fund Act, 1976
The Levy Sugar Price Equalisation Fund Act, 1976
Overview:
The Levy Sugar Price Equalisation Fund Act, 1976, is an Indian legislation aimed at stabilizing sugar prices and supporting the sugar industry. The Act establishes a fund called the Sugar Price Equalisation Fund, which is used to equalize the price difference between the sugarcane price paid to farmers and the price at which sugar is sold by producers. This mechanism helps protect both farmers and sugar producers from the volatility of the sugar market.
Purpose:
To ensure fair and stable prices for sugarcane farmers.
To prevent sugar producers from incurring losses due to fluctuating market prices.
To maintain an equilibrium between the interests of sugar producers and sugarcane growers.
Key Provisions:
Creation of the Sugar Price Equalisation Fund.
Levy on sugar production to finance the fund.
Use of the fund to compensate sugar producers if the market price falls below the government-determined price of sugarcane.
Regulation of sugar pricing and marketing by the government.
Significance:
Helps in stabilizing the sugar industry economically.
Encourages farmers to continue sugarcane cultivation by ensuring a minimum price.
Prevents sudden price crashes that could hurt producers and farmers.
Table Summary
| Aspect | Details |
|---|---|
| Act Name | Levy Sugar Price Equalisation Fund Act, 1976 |
| Purpose | Stabilize sugar prices; protect farmers & producers |
| Fund Established | Sugar Price Equalisation Fund |
| Funding Source | Levy on sugar production |
| Key Function | Compensate producers when sugar prices are low |
| Benefit to Farmers | Ensures minimum price for sugarcane |
| Benefit to Producers | Protects against losses due to price fluctuations |
| Regulatory Authority | Government of India |
| Year of Enactment | 1976 |
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