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Friday, August 19, 2022

Price hike in sugar likely from September 1

A price hike of sugar is all set to take place from the next week with the government mulling on modalities of doubling levy quota from 10 per cent a mill's total output soon.

A price hike of sugar is all set to take place from the next week with the government mulling on modalities of doubling levy quota from 10 per cent a mill’s total output soon. With recommendations of the tariff commission expected in four days,the price rise is likely to be enforced from September 1.

“The price rise should be anywhere between Rs 20-21,” said Prakash Naiknavare,MD Maharashtra State Cooperative Sugar Factories Federation Ltd at a press meet in the city on Friday.

The levy being a kind of tax on the industry under which the government procures a quantity of sugar produced by the mills at a price significantly below the open market price (the current levy price is Rs 13/kg while sugar retails for Rs 30/kg). The industry wants the government to both increase the levy sugar price and to give it marketing freedom for the next sugar year that starts in October.

He further said that prices of sugar have been stagnant at Rs 13 for the last six years. Following the Supreme Court directive,the Tariff Commission which was constituted to fix prices for levy sugar will give its recommendations. The levy quota to cover BPL families across the country on the PDS(public distribution system) should come upto 3.5 lakh tons for September and October.

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Although there is enough sugar to cater to BPL consumers this year,it is estimated that there will be a definite shortfall in covering the APL category in the 2009-10 crushing season starting October. Around 18 lakh tons of sugar will be available for the season of 2009-10 while new production would account for another 160 lakh tons and with imports of 50 lakh tons,it is estimated that there would be a total availability of 218 lakh tons as against an expected consumption of 230 lakh tons,said Naiknavare at the meet.

Meanwhile,in Maharashtra,sugar and foodgrain will be made available to rationcard holders at discounted rates. Around 62 lakh BPL cardholders and 43 lakh APL cardholders could get sugar at subsidised rates for September and October for the festive season. This would entail a total outgo of 28,000 tons each for September and October. The state government would purchase sugar at Rs 30 per kg from sugar mills and sell it at Rs 20 per kg for APL families and would bear the expanse of Rs 10 per kg. For BPL families,existing rates of Rs. 13.45 per kg would apply. The Maharashtra model is being replicated in Tamil Nadu and Kerala,he said.

First published on: 29-08-2009 at 04:08:38 am
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