Question : LEVY PRICE OF SUGAR



(a) the difference in terms of percentage in production, levy price and consumer price of sugar;

(b) the measures adopted to reduce this difference;

(c) the efforts being made to import sugar and make it available to the consumers at reasonable price; and

(d) if so, the details of its impact on the market price of the sugar?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a) & (b): Production of sugar during the current sugar season 2010-11 is estimated to be about 245 lac tons. 10% of sugar produced by every sugar mill is requisitioned as levy sugar at a levy price fixed by Government under Section 3(3C) of Essential Commodities Act, 1955. The levy sugar price is fixed on zonal basis. There are 19 zones, and the levy price for the sugar season 2010-11 varies from Rs. 1744.10 per quintal to Rs. 2052.01 per quintal. The levy sugar so requisitioned is distributed at subsidized price through Targeted Public Distribution System to BPL/AAY families in the country except to North-eastern states, Hill states and Island territories, where APL families are also covered. The Retail Issue Price of levy sugar is Rs. 13.50 per Kg. which is uniform throughout the country.

The balance 90% production of sugar is allowed to be sold as non-levy (free sale) sugar subject to regulated releases. The consumer price of non-levy sugar is market driven and determined by several factors like global and domestic production, demand for sugar, market sentiments, etc. The retail price of non-levy sugar is in the range of Rs. 30-33 per kg in the four metropolitan cities of the country as on 03.03.2011.

(c) & (d): Government does not import sugar on its own account. However, with a view to augment domestic stocks of sugar so that sugar becomes available to consumers at reasonable price, the Government has taken several measures including permitting duty-free import of raw and white/refined sugar upto 31.03.2011. As a result thereof, about 66 lac MTs of raw and white/refined sugar have been imported during the 2008-09 and 2009-10 sugar seasons. This has led to relatively stable market prices of sugar at reasonable level.