With the government decontrolling the sugar sector by allowing mills to sell sugar in the open market, cooperative sugar mills have decided not to supply the sweetener to 1,020 fair price shops across the city in the near future.
The four mills based in Sangli, Indapur and Miraj, who were supposed to provide 2,900 quintals of sugar for the months of April and May, have refused to supply sugar through the levy quota after the Central government’s decision to decontrol the country’s Rs 80,000-crore sugar sector.
“The city requires 1,450 quintals of sugar to be distributed to citizens living below the poverty line thorough the ration shops. However, the management of the four sugar mills has sent us a letter informing us that they are no longer going to provide sugar at subsidised rates,” said the city’s Food Distribution Officer (FDO) Dnyaneshwar Jawanjal.
According to Centre’s recent decision, from now onwards, the government will bear the subsidy. The decision includes no levy obligation on sugar mills for the next two years. Till recently, the sugar sector was controlled from production to distribution.
Through the release mechanism, the Centre fixes the sugar quota that can be sold in the open market and under the
levy system it asks mills to contribute 10 per cent of their output to run ration shops.
When asked how he will ensure availability of sugar at ration shops, Jawanjal said, “My office will intimate the state government about the latest development. The further course of action would be decided only after getting the government’s reply.”