Centre’s sugar policy has taken a sudden shift. Reasons are not known. Nevertheless, political commentators know the role of sugar lobby in national politics. Fluctuation in sugar prices does happen very often but a major shift in the policy is something that has puzzled the consumers and the States, which are affected by the new policy. So far the levy sugar provided to our State would come through the distribution system of Food Corporation of India (FCI). Transportation, storage and supply were the responsibility of this organization. This system had been in place for many years and nobody had any complaint against it.
In the third week of May last, a Cabinet meeting of the Union Government asked all the states including J&K to make arrangements of lifting the levy sugar from the mills at their own and also reduce the subsidy on the levy sugar. In all probability this could be an indication that the Government might lift the subsidy on sugar after elections. Observers are of opinion that this decision is going to benefit the millers/producers while a burden is added to ordinary consumers. In the process of making the policy shift practicable and smooth, it is apprehended that consumers may not get their quota of sugar ration for the months of June and July. According to Government, there may be some delay for releasing the quota for June but it will be only delay. Some CAPD outlets are projecting only delay and no suspension of the quota. Variation in sugar price is of considerable significance. The cost of sugar for the millers is Rs. 32-33 per kilogram while it sells in open market at Rs. 40 per kg. The subsidized levy sugar supplied by CAPD is Rs. 13.50 per kg.
One cannot explain the reason for a hurried and sudden decision of the Union Cabinet to make a drastic shift in sugar policy. Very short notice has been given to the states, including J&K, to make arrangements for lifting sugar on their own and not wait for the FCI. It was only on 22 May that the State Government was informed of the decision. Surprisingly, the decision had fixed June 1 as the date for stopping supply of sugar through FCI to the State. The entire process of buying, transporting and distributing sugar among the consumers is a complicated and also a lengthy exercise that consumes time. Himachal Pradesh, too, has expressed this difficulty. The right thing would have been to give sufficient notice to the state governments that they should lift sugar quotas on their own and not depend on any distributing agency.
The State Government anticipates many difficulties, which the UPA government’s decision about suspension of supply and distribution of sugar through FCI is likely to give rise to. Withdrawal of levy would mean the State shall have to invest 600 crore rupees a year on this item, which will be too hard for its meager resources The Government had appointed a committee to visit the mill owners on spot and report how the question of supply of sugar to the state would be regulated. Its report should be a good guideline for the State authorities to proceed in the matter.
All that one can say in this matter is that our State consumes 7,000 MT of sugar in a year. Additional expenditure of fifty crore rupees a month is a burden which ultimately the ordinary consumers will have to bear. The State authorities are trying to convince the consumers that they will be spared the hardship of non-availability of sugar. But the situation on ground is not very clear since the dealers of Public Distribution System are pessimistic about any quick solution of the problem.
The Union Government would be well advised to re-visit the time schedule of the implementation of revised policy of supply of sugar to our State. It should be gradual and smooth and leave no chance for apprehension of inordinate delay. It has also to be noted that hundreds of thousands of pilgrims will be visiting Kashmir in a few weeks time on pilgrimage to the holy cave of Swami Amarnath in the Himalayas. The State Government is eager to provide them all facilities. The Union Cabinet should have taken this into account while fixing 1 June as the cut off line for introducing new sugar policy.
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