Karnataka: Rise in sugar prices hits BPL families
The state Cabinet has given approval to hike the prices of PDS sugar from Rs 13.60 a kg to Rs 15 a kg.
Bengaluru: The sudden increase in prices of sugar in the open market has forced the state government to shell out three times more than the earmarked funds to supply one kg sugar each to Below Poverty Line (BPL) and Anthyodaya card holders across the State.
Sources told Deccan Chronicle that till now, the government was spending Rs 58 crore per year on purchase of sugar through tenders. However, with the price hovering between Rs 37 and 39 per kg, henceforth, the government will have to shell out around Rs 140 crore, an additional Rs 82 crore on sugar procurement.
This had upset all calculations of the Department of Food and Civil Supplies.
To bring down the loss, the Cabinet had given approval to hike the prices of sugar supplied through Public Distribution System (PDS) from Rs 13.60 paise per kg to Rs 15 per kg.
In March, the non-availability of sugar forced the department to stop supply of sugar to around 1.07 crore card holders. Now, sugar is available in the market but the price has gone up.
The cost of sugar comes to around Rs 40 per kg including transportation. Though, it is a loss making exercise, the government has to continue supply to the interests of the poor. "Once we have promised to distribute it at a subsidized rates, we can't stop supply just because the rates are high in the market", sources added.
The price of sugar has been increasing steadily in the last three to four months. It was available at Rs 25 to Rs 28 per kg during January-February but now, it has touched Rs 40 per kg.
The sudden increase has been attributed to shortfall in sugar production owing to drought in major sugar growing states like Maharasthra, Uttar Pradesh and Karnataka. The sugar price may breach the Rs 50 mark in the next two to three months.
Only one kg?
Sources maintained that consumers may have to forego three kg of sugar due for the month of March, April and May keeping in view the high rates. The department has decided to distribute only one kg of sugar from June, and not four kg per card.
“We may take a call whether to distribute four kg or one kg per card in next one week.” It may be mentioned here that BPL and Anthyodaya card holders have not been supplied sugar since March owing to non-availability.
