Lok Sabha Question No. 2380 (UNSTARRED), answered on 2018-01-02
Subject: Coverage of Subsidized Sugar in Tamil Nadu
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: PR. SENTHILNATHAN

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUESTION NO. 2380 TO BE ANSWERED ON 02 nd  JANUARY, 2018

## COVERAGE OF SUBSIDIZED SUGAR IN TAMIL NADU

## 2380. SHRI PR. SENTHIL NATHAN:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC

DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  the  Union  Government  is  in  receipt  of  any  letter  from  the Government of Tamil Nadu to extend the coverage of subsidized sugar to all priority  households to the scale of 2 kg per household and to enhance the subsidy from Rs. 18.50 to 28.50 per kg;
- (b) if  so, the details thereof including the Union Government's stand on this issue;
- (c) whether it is true that the subsidy rate of Rs. 18.50 per kg was fixed in the year 2002 and has not been increased till date;
- (d)
- if so, the details thereof and the reasons therefor; and
- (e) the measures taken by the Union Government to increase the supply of sugar to Tamil Nadu, the details thereof?

## A N S W E R

## MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

(a)&(b): The  State  Government  of  Tamil  Nadu  has  represented  to  the Central Government requesting to extend the coverage of subsidized sugar to  all  priority  households,  enhance  the  sugar  subsidy  from  Rs.  18.50  to  at least  Rs.  28.50  per  kg  and  assist  the  state  Government  in  protecting  the current scale of supply of sugar under Public Distribution System (PDS) in the state.

Since  there  is  no  identified  category  of  BPL  under  the  National  Food Security  Act  (NFSA),  2013  which  is  being  implemented  universally  in  the country,  the  Central  Government  has  reviewed  the  sugar  subsidy  scheme. Accordingly, it has been decided to continue it only for the Antyodaya Anna Yojana  (AAY)  families,  who  are  the  poorest  of  the  poor  and  the  most vulnerable  section  of  the  society  and  identified  under  NFSA,  2013.  The Central Government will continue to reimburse a fixed subsidy of Rs. 18.50 per kg @ 1 kg per month per AAY family to participating States/ UTs.

(c) &(d): The  Central  Government  has  been  reimbursing  a  fixed  sugar subsidy @ Rs. 18.50 per kg to the participating states/UTs since June, 2013 when the new dispensation for distribution of sugar  under PDS was put in place after de-regulation of sugar sector. The States/UTs have been allowed to pass on any additional expenditure on account of transportation, handling and  dealers'  commission  etc.  over  and  above  the  retail  issue  price  of  Rs.

13.50 per kg to the beneficiaries or bear it themselves. (e): In order to remove regional imbalances in demand and supply and to ensure availability of sugar at reasonable price, duty free import of 5 lakh MT of  raw  sugar  under  Tariff  Rate  Quota  (TRQ)  was  allowed  through  ports  of different  zones including 3 lakh MT from South Zone ports. Further, with a view  to  supplement  the  availability  of  sugar  mainly  in  Southern  India including Tamil Nadu and to stabilize sugar prices, Government allowed an additional import of 3 lakh MT of raw sugar by sugar mills/ refineries under TRQ, at 25% import duty, exclusively through southern ports of the Country.

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