The Cabinet Committee on Economic Affairs (CCEA) has given an approval to give flexibility to state governments to set retail price of PDS sugar that has been kept unchanged at Rs 13.50 per kg since 2002.
The state governments will now have the flexibility to fix the retail price of sugar, either lower or higher than the existing rate, and bear the cost accordingly. The Centre would continue to give the sugar subsidy for state purchases at Rs 18.50 per kg.
The state governments have been asked to buy sugar from the open market after decontrol of the sugar sector in April 2013, in order to meet the demand under the public distribution system (PDS). The Centre has been subsidizing such state purchases up to Rs 32 per kg.
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