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Report No. 249

76. Levy Sugar Price Equalisation Fund Act, Act 31 of 1976

Category: Food and Public Distribution

Recommendation: Repeal

The Act provides for the establishment, in the interest of the general public, of a fund to ensure that the price of levy sugar may be uniform throughout India. 'Levy sugar' is the 10% of sugar output that every sugar manufacturer has to sell to the government at reduced rates for the Public Distribution System (PDS). In view of the ongoing process of deregulating sugar, the Union Cabinet in 2013 approved the removal of levy sugar, initially for a period of 2 years.

The need for this Act is therefore being done away with. Hence, the Central Government should repeal this Act after introducing a suitable savings clause. This Act has been recommended for repeal by the Planning Commission in its letter No. 25/04/2014-OM&C dated 18th September 2014 to the Member Secretary, Law Commission of India.



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