Centre stops sugar subsidy to states
Posted on: 02/Feb/2017 3:06:34 PM
It has been mentioned in the union budget that the subsidy given to the states for selling sugar through ration shops has been stopped. As per the existing scheme, sugar is being sold for Rs 13.50 in the ration shops. The centre gives subsidy of Rs 18.50 per kg to states.
At this juncture, Centre’s Food Security Act has been implemented in majority of the states. The centre which is reducing the subsidy under the Food Security Act had earlier increased, almost three-fold, the price of rice and wheat meant for distribution. However Tamil Nadu government said that it will bear the burden and has been distributing free rice and has not increased the price of the wheat.
At this juncture, in the union budget finance minster informed that subsidy given to the states for selling sugar through ration shops will be stopped from 1st April, it is not known that whether Tamil Nadu Government will bear the financial restraint since the centre has withdrawn 100 percent subsidy on sugar.
