Delhi Government today decided to continue providing sugar to 3.64 lakh poor families through ration shops at subsidised rate of Rs 13.50 per kg even though the Centre has stopped supplies following decontrol of the sugar sector.
Under the decontrol policy, states are supposed to buy sugar from the open market. The difference between PDS price and the ex-mill price of Rs 32 per kg will be given by the Centre as subsidy to states.
"The Cabinet today decided to continue supply of sugar at Rs 13.50 per kg under public distribution system to 3.64 lakh BPL and Antodaya Anna Yojna ration card holders even after de-control of sugar by the Centre," Chief Minister Sheila Dikshit said.
The Centre in May had decided to remove controls on the sugar sector by giving freedom to mills to sell sugar in the open market and removing their obligation to supply the sweetener at subsidised rates for ration shops.
"We have always been taking care of the poor sections of the society and we have decided not to discontinue the benefit," Dikshit said.
The Chief Minister said government would procure 2,200 metric tonnes of sugar per month through Delhi State Civil Supplies Corporation Ltd from open market through competitive bidding.
The government would bear the difference between the procurement cost of sugar and the subsidy amount to be given by the Centre.
"This would ensure supply of sugar at the existing rate of 13.50 per kg to the BPL and AAY ration card holders," she said adding the city government would continue to provide 6 kgs of sugar per ration card monthly.
