New Delhi: To boost the supply of sugar and curb its price rise, the government is mulling increasing the amount of levy sugar that mills are required to contribute for selling in ration shops.
"The government is considering an increase in the
percentage of levy sugar to make more sugar available through
the public distribution system," Food and Agriculture Minister
Sharad Pawar said addressing state food ministers here on Wednesday.
At present, sugar mills are required to provide 10 percent of their total production as levy sugar.
Pawar had two rounds of talks with the industry on ways
of increasing supply of sugar. Among the solutions that were
discussed were increasing levy sugar quota and incentivising
farmers to grow more sugarcane crops.
"We will have to collectively think as to how we ensure
that this sugar really reaches the intended beneficiaries," he
said.
Pawar said sugar production for the next season "is not
going to be bright," adding that sugar output in the current
sugar season had declined from 263 lakh tonnes to about 160
lakh tonnes against the domestic requirement of 225-230 lakh
tonnes, which had put pressure on the prices.
In recent weeks, the rates of sugar have reached about Rs
30 a kg in the retail market from Rs 17-18 per kg a year ago.
Bureau Report
First Published: Wednesday, August 19, 2009, 12:16