Just a few days before the model code of conduct for the Lok Sabha elections came into effect, top sugar producer Maharashtra has decided to buy sugar for its public distribution system (PDS) from the co-operative sugar mills in the state. The Centre had abolished levy sugar and monthly release mechanism in April 2013 on the recommendation of the C Rangarajan committee.
Prior to this, the sugar mills had to supply 10% of their sugar output as levy quota for the PDS system. The Centre will bear the difference between the purchase price and the selling price (Rs 13.50 a kg). Many state governments had opted to buy the sweetener from open market through tenders.
But the Maharashtra government could not get any response from traders due to strict purchase conditions. Earlier, the Federation of Co-operative Sugar Factories of Maharashtra (Sakharsangh) had demanded that the state government should procure sugar from the cooperative sugar mills.
