The Central Government has considered the recommendations of Dr. C. Rangarajan Committee on deregulation of sugar sector and has, inter-alia, decided to do away with the levy obligation on sugar mills for sugar produced after September 2012. However, to make sugar available in the Targeted Public Distribution System (TPDS) at the existing retail issue price (RIP) of Rs.13.50 per kg, it would be procured by the States/UTs from the open market through a transparent system and the Central Government would reimburse the subsidy @ Rs.18.50 per kg, limited to the quantity based on their existing allocations. The said arrangement will be reviewed after two years. This information was given by the Minister of consumer affairs, food and public distribution Prof. K.V. Thomas in a written reply in Rajya Sabha today.
The Minister said that as mentioned above, the State Governments/ UT Administrations would procure sugar from the open market through a transparent system under the new arrangement and distribute it to targeted beneficiaries.
As indicated above, sugar would continue to remain available in the TPDS at the existing retail issue price of Rs.13.50 per kg so as to protect the interests of BPL consumers. Further, the open market prices are likely to remain stable in view of surplus availability of sugar in domestic and international market. Also, import duty has been kept at a moderate rate of 10% with effect from 13.07.2012.