07 अगस्त 2013
Centre plans to give freedom to states to hike PDS sugar price
New Delhi, Aug 7. Food Minister K V Thomas today
said his ministry has moved a cabinet proposal to give freedom
to state governments to hike the retail price of sugar sold in
ration shops.
At present, sugar is being sold at Rs 13.50 per kg in the
public distribution system (PDS). This price has not been
revised since 2002 despite increase in open market price to Rs
35-40 per kg.
After the decontrol of the sugar sector in May, the
states have been asked to procure sugar from the open market
to meet the ration shop demand from this month onwards. The
difference of only upto Rs 18.50/kg is paid as subsidy to
states.
"Since the procurement cost of sugar is high especially
in north eastern regions, the state governments want to
increase the retail issue price for PDS. I have discussed
this issue with the Finance Minister. The cabinet has to take
a decision," Thomas told reporters on the sidelines of a FICCI
event.
A proposal to allow state governments to increase the
retail price of sugar sold at ration shops has been prepared
for cabinet's consideration, he said.
Sources said that the Food Ministry's proposal is to allow
state governments to hike sugar price maximum by Rs one per
kg. This will reduce the subsidy burden.
Prior to partial decontrol of the sugar sector, mills
were mandated to supply 10 per cent of their production to
meet the PDS demand. The total requirement of sugar for PDS is
about 27 lakh tonnes, of which offtake is only 20 lakh tonnes.
The subsidy burden last year was Rs 5,300 crore.
Sugar production in the country is estimated at 24.5
million tonnes in 2012-13 marketing year (October-September),
against the total demand of 22 million tonnes.
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