GOVERNMENT OF INDIA

MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

LOK SABHA

UNSTARRED QUESTION NO: 1473

ANSWERED ON:21.08.2012

SUGAR PRICE

ANANT KUMAR HEGDE

(a) whether the prices of sugar have soared with the onset of festivals in the country despite imposition of stock limits and other steps taken to control the same;

(b) if so, the details thereof and the reasons therefor indicating wholesale price and consumer retail price of sugar in June, July and August this year;

(c) the quota of sugar released by the Government in the open market in view of the increased demand during the festival season and the extent to which it was higher than the average monthly allocation, Statewise;

(d) whether the Government proposes to increase/provide additional Public Distribution System sugar quota for the States;

(e) if so, the details thereof indicating the average monthly allocation and additional/increased quota of sugar, Statewise; and

(f) the other steps taken/proposed to be taken to control the price of sugar?

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTIONbe pleased to state:-

 MINISTER OF STATE (INDEPENDENT CHARGE) FOR

CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(PROF. K.V. THOMAS)

(a) and (b): The market price of sugar remained stable upto June, 2012 but started showing an upward trend from July, 2012 onwards. This recent increase in sugar prices is possibly on account of deficient monsoon leading to market’s expectation of lower production in the ensuing 2012-13 sugar season and fluctuations in international sugar prices, etc. Further, the Government has not imposed stock limits in the current sugar season. The range of wholesale price and consumer retail price of sugar in four metropolitan cities in June, July and August this year is given in Annexure-I.

(c): The non-levy quota of sugar released by the Government in the open market during 2011-12 and 2010-11 sugar seasons, month wise is at Annexure II. The non-levy quota released for open market is on all India basis and not State-wise.

(d) and (e): No such proposal is under consideration of the Government at present.

(f):The Government has recently taken following measures to control price of sugar:-

(i) The unsold non-levy quota of about 2 lac tonnes from April to June quarter was allowed for sale in the open market upto 14.08.2012 on 13.07.2012;

(ii) Sugar mills have been directed to sell at least 70% of July-September quota by August, 2012 vide order dated 24.07.2012;

(iii) Additional quota of 2.66 lac tonnes has been released on 27th July, 2012 to be sold off by 31st August, 2012; and

(iv) Another additional quota of 4 lac tonnes has been released on 7th August, 2012 to be sold off by 31stAugust, 2012.