Press Esc to close
Wednesday 27 May 2015
News updated at 11:16 PM IST
Weather
Max: 33°C
Min : 22.3°C
In Bengaluru
Sunny day

Sugar sector partially decontrolled

New Delhi, April 5, 2013, PTI:

Govt will continue to fix prices of sugarcane

The government on Thursday gave sugar mills freedom to sell in the open market and unshackled them from the obligation of supplying the sweetener at subsidised rates for ration shop — a decision that will help the industry save about Rs 3,000 crore annually.

The government maintained that the decision will not lead to any rise in retail prices of sugar. However, it would double the government’s subsidy burden to Rs 5,300 crore annually from about Rs 2,600 crore.

The decision to partially decontrol sugar sector, the only industry left under the government control, was taken by the Cabinet Committee on Economic Affairs (CCEA).

“The regulated release mechanism may be dispensed with immediately. Obligation of levy on sugar mills be done away with for sugar produced after September 2012,” Food Minister K V Thomas told reporters after the meeting.

Under the regulated release mechanism, the Centre fixes the sugar quota that can be sold in open market. Of late, this mechanism has been relaxed and the quota is now being released on half-yearly basis from the earlier monthly-wise.

In levy sugar system, millers are required to contribute 10 per cent of their output to the Centre for running ration shops at cheaper rate, costing industry Rs 3,000 crore a year.

Thomas further said the requirement of sugar for ration shops may be procured by states through open market through transparent system.

“The Government of India will bear the difference between the ex-mill price of Rs 32 per kg and retail sugar price of PDS at Rs 13.50 per kg,” Thomas added.

The government will continue to fix fair and remunerative price of sugarcane. The minimum distance criteria between two mills will also continue, among other controls.
Assuring that the government will continue to supply sugar via ration shops at cheaper rate, Thomas said, “As per the Rangarajan Committee recommendation, levy sugar has to be taken out of the system, we had a discussion. What we have decided is that the present public distribution system (PDS) system will continue at the same rate, same quantity.”


Go to Top

Photo Gallery
Sheep cross a parched area of a dried-up pond on a hot summer day...

Sheep cross a parched area of a dried-up pond on a hot summer day...

A man sleeps under the shade of a tree on a hot summer day at a public park in New Delhi...

A man sleeps under the shade of a tree on a hot summer day at a public park in New Delhi...

Boys splashing water on their face as the mercury rises in Hyderabad...

Boys splashing water on their face as the mercury rises in Hyderabad...

An Indian man rests inside a concrete pipe on a hot summer day in Hyderabad...

An Indian man rests inside a concrete pipe on a hot summer day in Hyderabad...

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday...

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday...

Kannada Actress Nitu at the launching of the Taxi always.com service...

Kannada Actress Nitu at the launching of the Taxi always.com service...

Fruit festival in Bengaluru...

Fruit festival in Bengaluru...

Houses in flames during a violence in Atali Village near Ballabgarh in Faridabad...

Houses in flames during a violence in Atali Village near Ballabgarh in Faridabad...

Rahul Gandhi having meal at the house of a fisherman during a visit to the Blangad fishing colony..

Rahul Gandhi having meal at the house of a fisherman during a visit to the Blangad fishing colony..

Narendra Modi with Federal Defence Minister of Germany, Ursula von der Leyen in a meeting...

Narendra Modi with Federal Defence Minister of Germany, Ursula von der Leyen in a meeting...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523