Monthly sugar quota for state slashed

By Our Special Correspondent

CHENNAI, MARCH 9.The Central Government reduced its monthly allotment of sugar to Tamil Nadu from 23,000 tonnes to 10,000 tonnes for the public distribution system (PDS) from the current month.

The reduction in allotment comes in the wake of the Centre withdrawing ration sugar under the PDS to those who are above the poverty line (APL) from March.

As the state has announced its decision to supply sugar for all cardholders, irrespective of their income, it has to purchase the balance quantity from the open market.

Already the state is purchasing about two lakh tonnes every month from cooperative and public sector sugar mills to meet its PDS requirement as its monthly offtake is in the range of 25,000 tonnes compared to the allotment of 23,000 tonnes.

Now the state has to purchase 15,000 tonnes from these mills to meet its PDS demand.

As there is a price difference of at least one rupee a kg between the open market and Central issue price, the food subsidy of the state government, now of the order of Rs. 1,800 crores per annum is to go up by another Rs. 18 crores per annum, according to official sources.

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Section  : Southern States
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