New Delhi: The cabinet committee on economic affairs (CCEA) will discuss on Monday freeing the prices of sugar and the proposed food security legislation, which is expected to be a key campaign plank for the ruling Congress-led United Progressive Alliance (UPA) coalition in the state polls and the 2014 national election.

The specially called meeting is likely to discuss completely freeing sugar prices that has been suggested by a panel led by C. Rangarajan, chairman of the Prime Minister’s economic advisory council.

“This is the first time that the cabinet is considering all the recommendations of a panel for the reforms on sugar decontrol, a government official said on condition of anonymity.

The Rangarajan committee, established in January, has favoured complete decontrol of the sugar industry. Its key recommendations include dispensing with the present mechanism of regulated release of non-levy sugar, dismantling of the levy obligation for sourcing sugar for the public distribution system at a price below the market price, and lifting outright bans and quantitative restrictions in favour of a stable external trade policy regime with modest tariff levels of 5% to 10%.

These recommendations have been welcomed by the regulated Rs.80,000 crore sugar industry. “The industry is waiting eagerly with a lot of hope and positive expectations that the unnecessary archaic controls on sugar would be removed for a brighter and successful future for the sugar sector,” saidAbinash Verma, director general of industry lobby group Indian Sugar Mills Association.

The cabinet committee on Monday will also discuss the food security legislation that proposes to make food a legal right, providing 5kg of foodgrains per person per month to 67% of the population at subsidized prices. The draft law proposes to provide rice at Rs.3 per kg, wheat at Rs.2 per kg and millet at Rs.1 per kg.

Two new additions have been made to the final draft at the request of UPA chairperson Sonia Gandhi, another government official said, requesting anonymity. These changes include fixing the subsidized price of foodgrains distributed under the proposed Bill for three years as against the initial recommendation of one year. A parliamentary standing committee had suggested that the prices should be fixed for five years.

The other suggestion is to extend a maternity benefit up to the birth of third child against the standing committee’s recommendation of limiting it up to the second child. “Gandhi has insisted that the benefits for poor women, pre- and post-delivery period, should not be limited to two children,” the official said.

Food minister K.V. Thomas had told reporters last week that the government was trying to bring the proposed law before the cabinet on Monday for approval.