TN seeks upper ceiling on sugar, tur

Chief Minister M Karunanidhi has urged the Centre to impose upper ceiling on the retail prices of essential commodities, including sugar and tur dal, under Section 3A of the Essential Commodities Act.

The state spends around Rs 500 crore every year to buy sugar from the open market to tackle shortage, which is estimated to be over 24,100 tonne a month.

Though the Centre allocates 10,832 tonne of levy sugar every month to Tamil Nadu, the state distributes 35,000 tonne at Rs 13.50 a kg. For this it has to spend Rs 500 crore a year to buy the additional quantity, said a government official.

“The provisions in the relevant Acts providing punishments for black marketing etc need to be made more deterrent,” he said. The state government has imposed stock limits and was taking strict action against hoarding, black marketing and smuggling of essential products including sugar, paddy, rice, pulses and oil seeds.

The chief minster said as the levy entitlement had been increased to 20 per cent from 10 per cent with effect from October 1, 2009, the Centre should double the levy sugar allocation to the state.

“The state public sector units should also be allowed to import essential commodities. The Centre should extend subsidy support to such import too,” said Karunanidhi.