PDS sugar only for poor

By Our Special Correspondent

NEW DELHI, JAN. 10. There will be no allocation of levy sugar for the non-poor (above the povertyline population) in the Targeted Public Distribution System (TPDS) from April 1.

In a major policy decision announced today, the Centre restricted the distribution of rationed sugar to Below Povertyline Population (BPL) at an enhanced allocation of 500 gm a person per month instead of 425 gms from April.

Consequent to removing the income tax payees from availing themselves of the TPDS sugar last year, the Government has now altogether weaned out the nearly 60 per cent of the non-poor as a step towards restructuring the TPDS. However, the entire population in the North-Eastern States, hilly States and the island territories would be provided TPDS sugar as freesale sugar price in these areas was high and so was the energy requirement.

At the same time, ``in a move towards liberalisation'', the Government has reduced levy obligation on the sugar industry from 30 to 15 per cent only and advanced the announcement of monthly releases of freesale sugar quota for mills from three to six months. Exported sugar has been exempted from levy till March 31. The levy sugar rate payable to mills for 2000-2001 has been raised from Rs. 1,110.71 to Rs. 1,165.79 a quintal.

A decision to increase the retail price of TPDS sugar from the present Rs. 13 a kg has been kept in abeyance. Also under consideration is the proposal to allow forward market trading in sugar. Subsidy on account of sugar for 2000-01 is Rs. 110 crores.

To ensure timely payment of cane price to farmers, the Centre had amended the Sugarcane (Control) Order, 1966, in November last enabling recovery of cane price arrears including mandatory interest due to delay in payment beyond 14 days of supply of sugarcane at 15 per cent per annum, as arrears of land revenue. Cane arrears for this year are Rs. 193 crores. Announcing these decisions, the Minister for Food, Public Distribution and Consumer Affairs, Mr. Shanta Kumar said with this the Government had taken a final view on the recommendations of the Mahajan Committee on the sugar industry. Crucial steps were also taken towards decontrol of sugar.

To a question about sugar supply under the TPDS to the ``borderline'' population just above the povertyline, Mr. Kumar said, ``we are not concerned about them. Universally that is the way it is. We are targeting food supplies to the below povertyline people.''The Sugar Development Fund had also been amended to facilitate loans for cogeneration. Sugar industry had the potential to generate about 3000 MW power from bagasse, he said.

Annual sugar allocation in the TPDS was so far 51 lakh tonnes. With the removal of APL population and after taking into account the increased quota of 500 gm per person per month, the annual requirement would now be about 25 lakh tonnes. With this, the Government has effectively cut its TPDS sugar allocation by half.

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