The price of sugar supplied through ration shops across the State will almost be doubled from ₹13.50 a kg to ₹25 with effect from November 1 this year.
However, a GO issued by the Co-operation, Food and Consumer Protection Department on Friday clarified the revision in price would not apply for holders of the Antyodaya Anna Yojana (AAY) cards (given to the poorest of the poor).
Incidentally, it was exactly a year ago (October 27), the AIADMK government in Tamil Nadu decided to implement the Centre’s National Food Security Act, which former Chief Minister Jayalalithaa was resisting for long.
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The State government’s decision follows the Centre’s withdrawal of subsidy for sugar from June 1 this year and restricting supply to 1,864 MT for 18.64 lakh AAY cards. The Centre's decision had brought down the subsidy reimbursement to the State government from ₹20 crore per month to ₹3.45 crore per month.
“In order to control expenditure, the State [government] has decided to continue the supply of sugar at ₹13.50 per kg only for AAY cards for eligible quantity as stipulated by government of India and to revise the selling price of sugar for other cards to ₹25 per kg for the eligible quantity with effect from November 1, 2017,” the GO stated.
Even after the revision, there is a difference of ₹20 a kg between the market price of ₹45 per kg at which the government procures sugar and the subsidised rate of ₹25 per kg. The State government would have to bear the subsidy, it stated.
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“The amount of subsidy on account of sugar alone to the State government will be ₹839.29 crore per annum,”it added.
Presently, sugar is supplied to all rice cardholders at the scale of 500 gram per head a month subject to a maximum of 2 kg a month and 1.5 kg per month for sugar cardholders.