Food Secretary dismisses allegations of scam in PDS sugar supply

ANUSHA GURUNG
GANGTOK, 15 Oct: Food and Civil Supplies Department Secretary, Jemima Pradhan, today dismissed allegations of a scam in the supply of sugar under the PDS published in some local media on 13 October.
Addressing a press conference today, Ms Pradhan reiterated that the allegations against the department were false and baseless.
“In fact the department, in its effort to bring good quality sugar of fresh stock, sought permission from Government of India to directly lift levy sugar from the mill and transport it to the state by road. Accordingly, Government of India agreed to our request and changed the status from FCI operated state to direct allotee state w.e.f. March 2006”, informed the Secretary.
She explained the pricing structure wherein it was mentioned that the state has to bear the cost of transportation and allied expenses of around Rs 526 per quintal [out of the total wholesale price of Rs. 2,565 per quintal] to bring sugar from the mills to the 27 state godowns.
The allegation that the Department is probably lifting lesser than the allocated quota of sugar which is 3910 qtls per month for the state and black marketing the balance is totally false, said Ms Pradhan. The monthly allocation of sugar for the state of Sikkim is 3910 qtls based on the number of Ration card holders in the state is being fully lifted every month and distributed in the state, it was further clarified. The Government is making all efforts to ensure that all the PDS items are made available to the consumer on time, she further assured.
“We have vigilance committees at the village level also but till date we have not received a single complaint regarding sugar supply. They have also provided details of sugar prices in Sikkim which is Rs 26 per kg”, the Secretary added.
The media reports being challenged by the Secretary were based on a report featured in some national dailies on the Union Cabinet was mulling over a proposal to raise price of levy sugar from Rs 13.50 a kg, fixed since 2002, to Rs 24-26 a kg but a decision has been deferred more than once. To cut the subsidy under PDS for sugar to the states, the central government had asked states to raise the price of sugar for the PDS without waiting for its own decision. Only Sikkim has done so while some other states have just stopped lifting sugar for the PDS.
Earlier, there was not much difference between the market price and levy sugar meant for the PDS but the difference has been rising over recent years. Since the states are reimbursed to the extent of Rs 13.50 per kg and the market price was around it, supply was not a problem for the PDS. The situation has since reversed and the lifting of sugar under the PDS from mills has come down to 60-70 per cent of the stock as against 90-95 per cent earlier, Ministry officials were quoted as saying. Subsidy is given to states against receipts of distribution of sugar under PDS at the levy price of Rs 13.50 per kg only. For instance, the Bihar and Chhattisgarh governments have almost stopped lifting sugar from mills for the PDS.