This Article is From Aug 25, 2009

Sugar shortage: Is govt doing enough?

New Delhi:

There is nothing sweet about this crisis, a shortage of sugar is sending prices sky rocketing specially in the open market. The government is trying to figure out what to do.

Women are standing for hours in long queues just to get some sugar.

At government-organised stall, sugar is being sold for a subsidized 24 rupees per kg. That's 12 rupees less than the price in the open market. The condition: just two kilos of sugar per ration card and till stocks last.

There are just five stalls in metros like in Kerala meant to stay till the September 1 which is Onam. But the government fears it might have to pull up the board 'stock over' much earlier.
Sugar in Kerala is now at 36 rupees that's a rise of almost 100 per cent and its the same story all over the country.

On Tuesday the Agriculture Minister met with sugar manufacturers to try and find a way out.

The government wants to double the amount of levy sugar, It's mandatory upon the mills to sell sugar to the government from the current 10 per cent to 20 per cent. By procuring additional sugar, the government wants to distribute it through the PDS.

But mills owners are resisting this, they say they earn almost double of what the government offers in the open market.

"Any decisions to increase sugar through the PDS quota ill be taken by the GoM," said Sharad Pawar, Agriculture Minister.

Sugar has always been essential commodity in India but this year has particularly been bad.

India consumers about 24 million tonnes of sugar every year but this year the production has been only 15 million tones, a shortfall of 9 million tones.

That's why the government is allowing import of raw sugar, but the Opposition says that's not enough.

"There is massive hoarding to create an artificial hoarding to push up prices," said Brinda Karat, CPM MP.

So, unless urgent steps are taken there will be nothing sweet this festive season.

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