Govt to announce sugar levy price for 2012-13 season soon
The government will soon announce the levy price of sugar -- the rate at which it buys the sweetener from mills to run ration shops -- for the current season, Food Minister K V Thomas said today.
December 20, 2012 / 09:34 IST
The government will soon announce the levy price of sugar -- the rate at which it buys the sweetener from mills to run ration shops -- for the current season, Food Minister K V Thomas said today.
"I have noted your concern regarding the delay in the notification of levy sugar prices for the year 2012-13. I have directed the Department of Food and Public Distribution to expedite the notification and ensure that the mills do not suffer on this account," Thomas said.Also read: Sell Shree Renuka Sugars;buy NHPC: SukhaniSpeaking at the annual meeting of the general body of the National Federation of Cooperative Sugar Factories Ltd (NFCSF) here, the minister said that notification regarding decision of carry forward of levy sugar will also be issued soon.For the 2011-12 sugar season (October-September), the government had hiked the levy price of the sweetener by Rs 58 to Rs 1,904.82 per quintal. Sugar mills are obliged to sell 10 per cent of their production to the government to meet ration shops demand. The levy price of sugar is calculated on the basis of Fair andRemunerative Price (FRP), which stands at Rs 170 per quintal for the 2012-13 season. On the Rangarajan Committee report on sugar decontrol, he said that Food Ministry has initiated action on the report."The feasibility and the time frame of implementing the various recommendations are under deliberation and I am sure that a considered decision would soon be taken on some of these issues," Thomas added.On blending of ethanol, the minister said that Ministry has made a request to the Petroleum Ministry to take quick decision regarding notification of mandatory blending of ethanol with petrol.NFCSF President Jayantilal B Patel said India is expected to produce 24.5 million tonnes of sugar in the current season compared to 26.34 million tonnes in 2011-12 season due to a decline in the yield of sugarcane from 70.3 tonnes per hectare in 2011-12 to 65.8 tonnes a hectare in 2012-12."Considering the domestic consumption of 23 million tonnes, India will have marginal surplus of sugar after meeting the domestic demand of sugar for the initial 3 months of 2013-13 season," he added. Patel said that NFCSF and industry body ISMA has urged the government to accept two main recommendation of the Rangarajan committee on sugar decontrol, the removal of levy sugar burden and monthly release mechanism from sugar industry with immediate effect. India is the world's second biggest producer and largest consumer of sugar. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
