The Levy Sugar Price Equalisation Fund Act, 1976 (Act No. 31 of 1976) was enacted by the Indian Parliament to ensure uniform pricing of levy sugar across India. The Act established a fund to regulate excess realizations by sugar producers and protect consumers from price disparities. It was introduced during a period of economic controls, where the government sought to stabilize essential commodity prices, particularly sugar, which was a politically sensitive item.

1970s Economic Controls: The Act emerged during India’s license-permit raj, where the government tightly regulated commodity prices to curb inflation and ensure affordability.
Sugar Industry Regulation: Sugar was a levied commodity under the Essential Commodities Act, 1955, with prices fixed to balance producer viability and consumer access.
Judicial Interventions: Courts occasionally allowed interim pricing, leading to disputes. The Act aimed to centralize and standardize these adjustments.
Post-1991 Reforms: While economic liberalization reduced price controls, the Act remained relevant until the Fund’s eventual dissolution (Section 12).
Consumer Protection: Ensured stable sugar prices nationwide, preventing regional disparities.
Industry Accountability: Forced producers to comply with pricing norms, reducing exploitation.
Legal Framework: Set precedents for handling excess profits in regulated sectors.
The Act reflected India’s socialist-era economic policies, prioritizing equitable distribution over market dynamics. Though largely obsolete today, it underscored the state’s role in essential commodity management during a critical period. Its legacy persists in debates on price regulation and food security.