Sugar subsidy cancellation will not have impact on Tamil Nadu
Posted on: 03/Feb/2017 1:03:40 PM
In Tamil Nadu under Public Distribution System, rice, wheat, sugar and other essential commodities are sold through ration shops at subsidized rates. Sugar is sold for Rs 13.50 per kg for green and white colour card holders. 35,000 tonnes of sugar are required in Tamil Nadu for distribution through PDS. Central government gives subsidy at the rate of Rs 18.50 for 10000 tonnes. The expense for the balance sugar is being borne by Tamil Nadu government.
At this juncture, the central government has decided to stop the sugar subsidy given to the states. Now a situation has risen that the Tamil Nadu government has to bear the entire expense of sugar. This will cause financial burden to the government.
An official of the PDS while speaking said: The cancellation of the sugar subsidy by the central government is not confirmed. It is still under their consideration. The central government gives Rs 18.50 Crores towards the subsidy of sugar. In case if the central government stops the subsidy, than the Tamil Nadu government has to bear the entire expense.
