Govt to source more sugar from mills for ration shops

Sugar mills will double their contribution to the government in 2009-10 season to 20 per cent of their produce, which will be used for ensuring supply in ration shops, a top government official said.

The percentage of levy sugar, meant for supply through public distribution system, has been increased to 20 per cent for 2009-10 season (October-September) from the existing 10 per cent, Food Secretary Alka Sirohi told reporters here.

The notification would be issued shortly, she said, adding that the move would help the government to meet the requirement of PDS estimated at 26-28 lakh tonnes annually.

The government supplies sugar through ration shops at Rs 13.50 per kg.

Noting that sugar availability position was comfortable, Sirohi said the opening stock of sugar on October 1, would be over four million tonnes, which includes imported sugar.

The Secretary informed that sugar mills and traders have contracted more than five million tonnes of raw sugar and 6.06 lakh tonnes of white sugar. Of this, as much as 2.16 million tonnes of raw sugar and 1.3 lakh tonnes of white sugar have arrived in the country.

Raw sugar may reach 2.4 million tonnes and white sugar 2 lakh tonnes of white by the end of current month, she added.

Sirohi said sugar prices have eased during last 10 days because of several steps taken by the government.