Centre lifts subsidy on distribution of sugar via PDS, onus now on states

Overall subsidy burden on the government would go up marginally by 5% in 2017-18

The Central government Wednesday quietly withdrew a Rs 4,500 crore subsidy that it gave to states for distribution of subsidised sugar through the public distribution system (PDS) which many said would from now onwards be the responsibility of the states. The allocation for 2017-18 under the head has been lowered to Rs 200 crore which is for payment of pending liabilities under the programme.

The word “subsidy”, in fact, found mention only once in the finance minister’s speech when he referred to credit linked subsidy for 1000 mini-labs to be set up by qualified local entrepreneurs called Krishi Vigyan Kendras