States shy away from lifting PDS sugar

NEW DELHI: States like Assam and Jammu & Kashmir have lifted less quantity of levy sugar in the 2007-08 season, compared with the allocation made to them under PDS, as prices in open markets crashed due to bumper output.

According to official sources, 11 states and Union Territories have lifted less quantity of levy sugar, which are meant for distribution through ration shops, in 2007-08 season (October-September) than what was allocated to them.

These states and UTs are Delhi, Assam, Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Tripura, Jammu & Kashmir, Lakshadweep, Anadaman & Nicobar. Explaining the reason for low lifting of levy sugar, a senior government official said lifting of sugar mainly depends upon the price of non-levy sugar in the open market.

���In the years of high production, prices of non-levy sugar remain subdued and the difference between non-levy and levy prices narrows down significantly, resulting in poor or non-lifting of the allotted sugar,��� he said.

India witnessed bumper sugar production in the 2006-07 and 2007-08 seasons, which led to a glut in domestic markets and triggered a decline in prices. The retail issue price of levy sugar under the PDS is Rs 13.50/kg since 2002.