In view of the bumper sugarcane harvest in the new crop season that starts in October, an empowered group of ministers (EGoM) today allowed an additional 500,000 tonnes of sugar export from this year’s crop. It also allocated an extra five million tonnes of foodgrain for distribution to above poverty line (APL) families through the public distribution system (PDS).
“We have considered the request of the sugar millers and have allowed export of another 500,000 tonnes of sugar through the open general license (OGL),” a senior food ministry official said. In April, the government had okayed 450,000 tonnes of sugar exports. However, millers have been demanding more exports be allowed in view of bumper harvest next year and also enable them to clear the dues accruing to the farmers.
Sugar production in the new crop season is expected to rise 26-26.5 million tonnes, up almost 10 per cent from this year. With this, the total sugar export allowed this season has gone up to almost one million tonne.
The decision to remove the stock holding limit on grains and sugar, however, has been deferred. Sources said this has been deferred because the order expires by July-end, hence, there was no need felt to revoke it now. The EGoM, headed by Finance Minister Pranab Mukherjee, also decided additional allocation of five million tonnes of foodgrains to APL families. Officials said the additional allocation of five million tonnes of foodgrains will be distributed to 11.5 crore APL families via ration shops till March 2012.
It will be distributed via PDS to APL families in 20 states that are not receiving the existing quota of 15 kg at Rs 8.30/ kg, rice, and Rs 6.10/kg, wheat.
Additional foodgrains will also be allocated to North Eastern states, Himachal Pradesh and Uttarakhand, where APL families have not been receiving the current quota of 35 kg.
The government had earlier announced a similar plan for both APL and BPL families, but off-take by state governments has been poor.
With this the total additional grain allocation this year has risen to 1.5 million tonnes, which is over and above the usual allocation under public distribution system.
Meanwhile, foodgrain stocks with the government rose to all-time high of 65.60 million tonnes on June 1 due to bumper crop production last year and higher procurement prices.
The sowing of Kharif paddy is under way and the crop will be harvested from October, thereby requiring storage space. The country has a total storage capacity of 62 million tonnes.
