Delhi to continue sugar subsidy

The Delhi government Monday decided to continue supplying sugar at subsidized rates to capital's poor despite central government's April decision to decontrol prices, said Chief Minister Sheila Dikshit.

"We have decided to continue providing sugar to 3.64 lakh BPL (below poverty line) and AAY (Antyodaya Anna Yojana) card holders at (the existing) Rs.13.50 per kg. The government has always been taking care of the poor sections of the society, hence, we decided not to discontinue the benefit," Dikshit told reporters after a cabinet meeting.

It was decided that the city government would procure 2,200 MT sugar per month through Delhi State Civil Supplies Corporation (DSCSC) Ltd. from open market through competitive bidding.

The government would bear the difference between the procurement cost of sugar and the subsidies receivable from the central government and the price of supplied sugar to the ration card holders.

In April, the central government had given a go ahead to sugar mill owners to for sell sugar in the open market and removed their obligation to supply it at subsidized rates to ration shops.