The Hindu Business Line : Centre begins nationwide release of 30-lakh t sugar buffer

Notification details
The Government announced dismantling of 30 lakh tonnes on July 1.
Sugar factories are allowed to sell 25% in domestic market in 2 months of its dismantling (from Aug 1 to Sept 30).
The remaining 75% can be sold during 2008-09 sugar season, commencing October 1.

Our Bureau

Hyderabad, July 24

As part of efforts aimed at tackling the spiralling inflation rate and also to bail out the sugar lobby from high cost overruns, the Union Government has begun a nationwide release of sugar buffer amounting to 30 lakh tonnes.

This also means infusing Rs 780 crore into the sugar industry in the form of sops to sugar factories.

Mr R.P. Bhagria, Chief Director of Sugar (Union Department of Food and Public Distribution), is leading a team to the western and southern States, talking to the sugar factories in this regard.

On Thursday, the team was in Hyderabad interacting with the representatives of sugar factories at the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI). For the current year, the budgeted amount for this purpose was put at Rs 350 crore. “Last year (including the arrears for the previous 4-5 years), we have disbursed Rs 176 crore,” he told reporters on the sidelines of the deliberations with the factory representatives.

With the country registering a record production of 283 lakh tonnes, the department had decided to go for a buffer of 50 lakh tonnes. Of this, 20 lakh tonnes had already been released (or dismantled.) Efforts were on to release the remaining 30 lakh tonnes, keeping in mind the increasing prices.

“Fresh infusion would ease the pressure on prices,” he said.

Govt subsidies

In order to maintain the stocks, the Government would pay a fee in the form of subsidies for holding the stocks and interest. The factories, however, needed to submit the details of the sugar sold in the market in order to get the funds from the department.

The Union Government has announced dismantling of 30 lakh tonnes on July 1. The sugar factories have been allowed to sell 25 per cent in the domestic market in two months of its dismantling (from August 1 to September 30).

After covering Maharashtra, Karnataka and Andhra Pradesh, Mr Bhagria’s team would next go to Chennai to talk to the sugar industry there on this issue.

More Stories on : Sugar | Andhra Pradesh

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