Govt to source sugar from open mkt

new delhi: the government would source sugar for the public distribution system post-decontrol from the open market at the competitive rates and foot the subsidy bill for supplying it to bpl families, according to the minister for food, public distribution and consumer affairs shanta kumar. he also said that 'automobile part's would also be removed from the list of essential commodities via amendment of the essential commodities act. this would be in addition to the items decided to be delisted from the essential commodities list on tuesday by the union cabinet. these statements were in the context of decisions taken by the cabinet on tuesday for full decontrol of sugar and relaxations in restrictions on seven commodities under the essential commodities act and removal of certain items from the essential commodities list. addressing reporters at a press conference here today, he said that the government intended to supply sugar through the pds even after full decontrol of sugar which is slated for the year 2002-03. he also clarified that the government intended to fully decontrol sugar during 2002-03 but only after operationalisation of futures/forward trading in sugar which is expected by november. he listed five steps that the government intends to take before full decontrol of sugar. these include: firstly, sugarcane price rationalisation, improving viability of sugar mills by promoting utilisation of by-products such as ethanol and via co-generation of power. secondly, profitable use of by-products would be encouraged by giving loans from the sugar development fund, he said. thirdly, the government intends to provide export incentives by giving a transport subsidy for sugar export. the transport subsidy would involve the government bearing the entire cost of the internal transport of sugar to the port. the fourth step is forward/futures trading in sugar which we have already permitted,'' he said. fifthly, in order to increase quality of the sugar, the government has decided to cover sugar and sugar products under the voluntary certification marks scheme of the bureau of indian standards. this means that producers would be free to apply and get this certification which would help establish the credibility of indian sugar in the international market as well. we intend to include amendments for introducing transport subsidy in the bill to amend the sugar development fund currently before parliament,'' he said. a bill to allow loans to be given from this fund for use of ethanol and for co-generation of power by the sugar mills is already before parliament. referring to cabinet's decision to remove 12 items from list of essential commodities, kumar said, there is one more item we want to remove but this will require an amendment in the essential commodities act. so, we have decided that we will include this amendment in the bill we have already moved in parliament for amending the act for other purposes.'' the bill currently before parliament aims to amend the eca for increasing certain penalties for violation of the act rules and also to introduce safeguards. answering questions on the validity of the central order to be issued for freeing wheat, rice, paddy, coarse grains, sugar, edible oilseeds and edible oil from licensing requirements, and restrictions on storage and movement, he said that 30 days after this central order was issued various previous orders issued by states on these subjects and on these items would cease to be effective.

Govt to source sugar from open mkt

NEW DELHI: The government would source sugar for the public distribution system post-decontrol from the open market at the competitive rates and foot the subsidy bill for supplying it to BPL families, according to the minister for food, public dis...

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