The
Cabinet Committee on Economic Affairs cleared partial decontrol of
sugar by abolishing the requirement for private sugar mills to sell a
specified amount of sugar to the government at concessional rates.
Prior to this notification, sugar collected at concessional rates was
distribution under the Public Distribution System. Now sugar industry
will be able to sell large quantities on a commercial basis. The removal
of the levy sugar burden is expected to save around Rs 3,000 crore.
It is learnt that the decontrol is largely in line with recommendations made by the Rangarajan committee .
levy sugar system, millers were required to contribute 10 percent of their output to the Centre for running ration shops at cheaper rate.
The Centre will continue to provide sugar to the poor under the Public Distribution System (PDS) at the current issue price of Rs. 13.50 per kg. For this, the States will be free to purchase through a transparent system at the current ex-factory price of Rs. 32 per kg which has been capped for two years. The difference between the purchase price and the issue price will be borne by the government.
It is learnt that the decontrol is largely in line with recommendations made by the Rangarajan committee .
levy sugar system, millers were required to contribute 10 percent of their output to the Centre for running ration shops at cheaper rate.
The Centre will continue to provide sugar to the poor under the Public Distribution System (PDS) at the current issue price of Rs. 13.50 per kg. For this, the States will be free to purchase through a transparent system at the current ex-factory price of Rs. 32 per kg which has been capped for two years. The difference between the purchase price and the issue price will be borne by the government.
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