Now, states can fix PDS sugar price

As of now, the price of sugar sold via PDS is Rs 13.5 a kg, unchanged since 2002

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal to allow states to fix the retail price of sugar sold through the Public Distribution System (PDS). As of now, the price is Rs 13.5 a kg, unchanged since 2002.

“The CCEA has approved the proposal on PDS sugar price,” the Press Trust of India reported, quoting a source. Sources said the Centre would continue to give subsidy for state purchases at Rs 18.5 a kg (the difference between the retail issue price and the ex-mill price of Rs 32 a kg).

After the decontrol of the sugar sector in April 2013, state governments were asked to buy sugar from the open market to meet PDS demand. States such as Gujarat and Kerala have been demanding the Centre either increase the subsidy for this year and share the transport cost or give states the freedom to increase retail PDS sugar prices.

Before the sector was decontrolled, it was mandatory for millers to supply 10 per cent of their overall production to the government at a rate lower than that prevailing in the retail markets, for it to be sold at ration shops.

About 2.8 million tonnes of sugar a year is required for PDS.

Highway projects get nod
In another decision, the CCEA approved two highway projects in Jammu & Kashmir (J&K), together accounting for investment of Rs 3,383 crore.

Communications & IT Minister Ravi Shankar Prasad said the projects are related to strengthening important National Highways in the state and the government had fulfilled its promise of improving infrastructure in J&K.

The first project, four-laning of the  Ramban-Banihal section of National Highway – 1A (now NH-44) will cost Rs 1,623.98 crore.

Another project is related to four-laning of the Udhampur- Ramban section of National Highway. The 40.07-km project will cost Rs 1,758.68 crore.

“Implementation of these projects would provide all-weather connectivity from Jammu to the Kashmir valley. It will also reduce journey time from Jammu to Srinagar and strategic border areas in the state of J&K,” an official release said.

Both projects will be built under engineering, procurement and construction mode and work will be done under the National Highways Development Project Phase-II, the release said.