Central government to stop sugar at ration shops

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Central government to stop sugar at ration shops

Its said that Central government to stop the sugar subsidy which is said to be sold at ration shops. As to supply sugar at low price through ration shops to many people living below poverty line, Central government is stating subsidy to state government. 

 According to existing scheme, states said to purchase sugar to be supplied through ration shops from open market at wholesale rates and sell at subsidized rate of Rs 13.50 per kg. States said to get subsidy at Rs 18.50 per kg from central government.
Scheme has target 40 crore beneficiaries BPL(below poverty line) families. At this instant there are many indications from finance ministry that existing sugar subsidy scheme to be discontinued from next financial year. Central government’s contention is that there is no delineation from BPL families in new Food Law and there are apprehensions that state governments may divert subsidized sugar.
Because of this, existing sugar scheme is said to be discontinued from next fiscal. This move is to save Rs 4,500 crore to the central government.
  
Its understood that the food ministry already stated that central government is said to withdraw subsidy on sugar from financial year.
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