Centre stops levy sugar to J&K, State to bear Rs 600 cr addl burden

Gopal Sharma
JAMMU, June 7: The consumers under Public Distribution System in the State may go high and dry during June and even in July this year as the Centre has ‘suddenly’ stopped the supply of levy sugar through Food Corporation of India (FCI) to J&K besides other states.
This decision of the Union Government may provide a big relief to the strong lobby of  sugar producers/ millers in the country but it has brought an additional burden on the states which will now purchase the sugar directly from the sugar producers/millers of UP, Maharashtra, Haryana and other states. The Centre after a cabinet decision in the third week of last month abruptly asked all the states including J&K to make arrangements at their own and also reduced the subsidy on the levy sugar. It is likely to withdraw subsidy on the stuff in next phase, most probably after elections.
Authoritative sources told the Excelsior that on May 22, 2013 the Centre directed J&K to make arrangements at its own regarding purchase and distribution of levy sugar to its over one crore rationees  in the State. This has invited a great trouble for the State to make arrangements including purchase, transportation and distribution in even the far flung blocks of the State. Nearly 8,40,000 quintal  levy sugar is being procured by the State from FCI  and the State CAPD has fixed the subsidized rate as Rs 13.50 per kg. The sugar at present costs to the millers/ producers not less than Rs 32 to Rs 33 per kg while it is available in the market at the rate of nearly Rs 40 per kg.
Chief Minister Omar Abdullah and Minister for CAPD, Ch Mohd Ramzan  took up the issue strongly with the Union Agriculture Minister, Sharad Pawar and Secretary, Food Supplies  but they reportedly have shown reluctance to review the decision.
Not only J&K which is non-sugar producing State, but the neighbouring Himachal Pradesh has also strongly pleaded with the Centre to continue with the old system for at least 3 to 4 months so that states could get sufficient time in switching over to the new mechanism and study sugar market and make arrangements for lifting commodity directly from the millers in bulk and also manage funds to bear the additional burden of subsidy/ transportation component.
Minister for CAPD,  Ch Ramzan when contacted said that State has no plans to stop the distribution of levy sugar to the consumers. He said the public will continue to get the sugar at the rate of Rs 13.50 per kg from the Government ration depots. But they may not be able to get the quota this month as the sudden and surprising decision of the Centre has put the State in great trouble.
Not only J&K but Himachal, Punjab and all other North- eastern states are also facing this problem and they have taken up the issue with the Centre vigorously. Now, it is up to the Union Government to accept our plea or reject it, Ch Ramzan added.
Replying to a question, he said, the sudden directive from the Centre came on 22nd of last month and in such a short notice it is not possible to make arrangements of supplies for over  22 lakh ration card holders. He said the Centre used to transfer subsidy component to the FCI and  this agency has network through out the country.  It has stores, suppliers  and arrangement of supplies through trains and transport companies as well.
“We have to start afresh and a team of officers including both CAPD directors from Kashmir and Jammu besides Financial Advisor were sent to UP, Haryana and other states to have assessment  and study the market and give suggestions to the state Government. They have submitted a report and the department would go for national level e-tendering shortly. The State would bear additional burden of over Rs 50 crore per month which may roughly come out to be Rs 600 crore annually and it my go high. The Centre has assured to provide some subsidy component directly and rest we have to manage from our own resources and big exercise has begun on the matter,” Mr Ramzan added.
Commissioner /Secretary, CAPD, Mohd Abbas Dar when contacted said that there is just shift in the old mechanism now and as being projected in the public that levy sugar supply will be stopped, is not true.  He said the people will get sugar at the same rate but it may take some time as the State has started its exercise to make arrangements. The department has decided to go for tendering process at the national level. He said the Centre will provide subsidy directly but State has to bear some additional burden. The FCI has been excluded now and State will make all arrangements at its own and make purchases directly.  The J&K being non-sugar producing State will face more problems as compared to other states. The transportation component is also an additional burden and State has to make this all from its own resources, Mr Dar maintained.
Director CAPD Jammu, G S Chib said that he was also part of 4-member committee sent by State out side. He said the team visited Lucknow, Haryana and other areas and found that as per millers’ claims,  sugar costs them between Rs 33 to Rs 34 per kg, while the market rate of sugar is between Rs 38 to Rs 40 per kg at present. He said the committee after all assessment and findings has submitted a detailed report to Govt.
The State Government at high level has reviewed it and a collective decision has been taken to go for e-tendering to maintain transparency in the system of purchase. The process has been set in motion. He said nearly 7000 MT sugar is the requirement of the State and nearly 3200 MT is the quota of Jammu region. The district wise quota has also been fixed as per the strength of the rationees.
The CAPD is providing 700 gm sugar per soul as per the 2001 census while after this the population  has increased to 1.25 crore now. He said the consumers are unlikely to get the sugar during this month and most of the sugar stores were  also lying dry.
Meanwhile, the rationees in the region are complaining that ration dealers have projected that the supply of levy sugar has been stopped by the CAPD department and it will not be available to the public from June inward. In view of the coming festivals and Shri Amarnath Yatra, the decision of the Government and delay being caused has created strong resentment among the general public. The Government ration dealers alleged that concerned Tehsil Supply Officers (TSOs) were not accepting the payment for the supply of sugar on the plea that no final decision has been taken in this regard so far. As per the past practice, the sugar is made available to the public mostly after 15th  of every month by the CAPD officials.
The consumers continue to make several rounds of the depots during first half of the month and hardly fifty per cent of them turn up for taking the quota with little hope of getting it. This ‘designed strategy’ is needed to be discouraged and kept under vigil by the senior officers connected with the distribution to check possible pilferage, the consumers said.