Rs. 4995 Crore Centre Subsidy to Provide Ration Sugar at Existing Rates

Prof. K.V.Thomas, Minister of Consumer Affairs, Food and Public Distribution has informed Lok Sabha today that the Central Government is providing subsidy for distribution of sugar through fair price shops in the Targeted Public Distribution System (TPDS) at a uniform Retail Issue Price (RIP) throughout the country. He was replying to a written question in the House.

He said that the Central Government has considered the recommendations of Dr. C. Rangarajan Committee on de-regulation of sugar sector on 4.4.2013 and, has, inter-alia, decided to do away with levy obligation on sugar mills. However, to make sugar available in the TPDS at the existing RIP of Rs.13.50 per kg., the Central Government would reimburse the subsidy @ Rs.18.50 per kg, limited to the quantity based on the States/UTs existing allocations. Considering that the States /UTs quota is about 27 lac tons, the total subsidy would amount to approximately Rs. 4995 crores.

Prof. Thomas further said that under the new dispensation, State Governments/UT Administrations would procure sugar in a transparent manner from the open market and claim subsidy from the Central Government for the quantity distributed in the TPDS. The guidelines for claiming subsidy are being framed and would be issued shortly.


Tags: C. RangarajanCentral GovernmentK V ThomasLok SabhaPublic Distribution SystemSubsidySugarTPDS

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates