Tamil Nadu Govt. urges Centre to enhance sugar subsidy

Chennai : Tamil Nadu government has requested the Centre to extend the coverage of subsidised sugar to priority households and enhance the subsidy to Rs 28.50 per kilogram from the current Rs 18.50.

Drawing the attention of Prime Minister Narendra Modi on the issue, Chief Minister K Palaniswami in a letter, said the union government had fixed the subsidy at Rs 18.50 per kilogram of sugar under the Antyodaya Anna Yojana scheme.Stating that 'Priority Households' were identified by following stringent guidelines under the National Food Security Act, 2013, he said the households represent the most vulnerable sections of society.

Expressing concern that the exclusion of such vulnerable sections of society from availing sugar at subsidised rate would lead to serious discontent among the public, Palaniswami said, "the coverage for sugar at subsidised rates may kindly be extended to all Priority Households".

On the subsidy provided by the Centre, he said it was fixed at Rs 18.50 per kilogram in 2002 when the market price of sugar was at Rs 32 per kilogram."Now, the market rate of sugar has gone up to Rs 42 per kilogram and the State government has to bear this additional expenditure of approximately Rs 10 per kilogram", he said.

"Therefore, the level of subsidy which was fixed in 2002 may be revised to Rs 28.50 per kilogram," he said.On the distribution of sugar at 0.5 kilogram per person subject to a ceiling of two kg per ration card, he said, "it may not be desirable to bring down the current scale of supply among the poorest of the poor. Therefore, the present scale of supply may kindly be protected".

Sugar is one of the essential commodities that has been supplied in public distribution system in the State on a regular basis, Palaniswami said, adding the average consumption of sugar per month was 35,500 metric tonne.

"State government has been bearing the entire financial burden with huge drain on the the exchequer", he said.
Palaniswami requested Modi to extend the coverage of subsidised sugar to all priority households, increase the subsidy to Rs 28.50 per kilogram, and assist the government in protecting the current scale of supply in the State.