PDS Sugar Turns Bitter for Maharashtrians

By Jayashree Bhosale

PUNE: Getting assured supply of sugar has not been possible for people dependent on the public distribution system in Maharashtra, the largest producer of the sweetener . As the open market sugar prices are much higher than the government-offered price, the co-operative sugar mills have refused to sell sugar to the state government . The food and civil supplies department has now asked the district administration to buy sugar from the local mills by participating in their weekly tenders .

The central government abolished the levy sugar system last year making state governments make their own arrangement for procuring sugar. The central government decided to give subsidy of Rs 32/kg to the state governments for this purpose. Many states bought sugar from the open market through tendering. The efforts of Maharashtra government to buy sugar from the market through e-tendering did not receive any response from the traders.

According to the traders, the conditions were tough for participation. Meanwhile, the Maharashtra State Co-operative Sugar Factories Federation (Sakharsangh) was persuading the state government to procure PDS sugar from the sugar co-operatives through Sakharsangh. Refusing to accept this demand of Sakharsangh for almost a year, the state government finally gave in last month as it could supply no further sugar to the PDS shops.

Last month, it has signed a memorandum of understanding with the Sakharsangh to buy sugar from the co-operatives . As the market prices of sugar have increased to more than Rs 31/kg, the sugar mills refused to sell sugar to the state government. "The price offered by the state government is less by about Rs 200 - 300/ quintal than the current market rate," said a representative of the co-operative sugar mills. The food and civil supplies department has now instructed the district administration to buy sugar at district level.