Giving freedom to millers to sell in the open market and removing their obligation to supply the sugar at subsidized rates to ration shops, the government on April 4 partially decontrolled the Rs 80,000-crore sugar sector.
Food Minister K V Thomas said
the government will continue to sell subsidized sugar through ration
shops after procuring it from the open markets.
The
government supplies about 17-20 lakh tonnes annually through ration
shops at subsidized price and decision will lead to government's annual
sugar subsidy doubling to Rs 5,300 crore.
Sugar industry is the only
sector which is controlled by the government right from the production
through marketing of sugarcane and sugar
Food Minister K V Thomas said the states will be mandated to sell
sugar at current retail issue price (RIP) of Rs 13.50 per kg and will be
given subsidy for the balance amount between RIP and the current
ex-mill price calculated provisionally at Rs 32 per kg. The ex-mill
price will be capped at Rs 32 for 2012-13 and 2013-14 marketing years
(September-October), he added.
Note
India, the world's second biggest sugar producer,
is expected to produce 24.5 million tonnes of sugar in 2012-13
marketing year (October-September) from 26.3 million tonnes in the
previous year. While, the country annual domestic demand is pegged at 22
million tonnes
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