Sugar to bypass CAFPD

Source:

Imphal, May 25 2013 : In place of the existing system of distributing the PDS item of sugar through Consumer Affairs and Public Distribution (CAF&PD) Department after the commodity is handed over to the department by FCI, the Government would now buy sugar from sugar mills directly at market price and distribute the same commodity to public at subsidised rate.

Official sources informed that the new arrangement is in accordance to a decision adopted by the Government of India’s Cabinet Committee on Economic Affairs to de-control sugar.

The new arrangement would be in force for two years.

As per the decision of the Cabinet Committee on Economic Affairs, State Governments should purchase sugar from sugar mills directly and distribute the commodity to public at subsidised rate through fair price shops.

The Government of India would pay for the expenditures incurred by State Governments in providing sugar to public at subsidised rate.

Accordingly, the State Government would stop buying sugar from FCI after the current month.

The State Government would start purchasing sugar from mills directly starting from June.

Most of the sugar mills identified by the State Government for purchasing sugar are located in Maharashtra while some others are located at Karnataka, Tamil Nadu and Uttar Pradesh.

For selection of transporters who would transport sugar to Imphal from these States, the Government of Manipur has initiated due tender process.

However, as the tender process is yet to be completed, it is feared that the Government would be unable to ship in the State’s sugar allocation for the month of June.

Taking the total population of Manipur to be 25.18 lakhs as on March 1, 2000, monthly allocation of sugar for Manipur is 1763 metric tonnes at the rate of 700 gms for every individual.

The rate of allocation fixed by the Government of India in 2000 has not been revised till date.

According to the Government of India’s estimate, the State Government should procure sugar at Rs 32 per Kg and the same should distributed at the subsidised rate of 13.50 per Kg.

Yet, it remains a big question whether the State Government would be able to provide sugar at the subsidised rate estimated by the Government of India given the huge distance separating Imphal and the sugar mills.

It is clear that sugar mills would benefit a lot from the decision of the Cabinet Committee on Economic Affairs but it is doubtful that the new arrangement would benefit people.

Moreover, the Government of India would be required to spend a huge amount in paying subsidies to the State Governments, the sources added.

via NorthEast Calling - NorthEast India | India's No1 online News Magazine http://necalling.com/sugar-to-bypass-cafpd/