The Central Government has considered the recommendations of Dr. C. Rangarajan Committee on de-regulation of sugar sector on 4.4.2013 and, has, inter-alia, decided to do away with levy obligation on sugar mills. However, to make sugar available in the TPDS at the existing RIP of Rs.13.50 per kg., the Central Government would reimburse the subsidy @ Rs.18.50 per kg, limited to the quantity based on the States/UTs existing allocations. Considering that the States /UTs quota is about 27 lac tons, the total subsidy would amount to approximately Rs. 4995 crores.
The new dispensation, State Governments/UT Administrations would procure sugar in a transparent manner from the open market and claim subsidy from the Central Government for the quantity distributed in the TPDS. The guidelines for claiming subsidy are being framed and would be issued shortly
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