Hyderabad, Feb. 9 The Andhra Pradesh Government is contemplating inviting global tenders to import sugar both to improve its availability and also help check its price rise and hoarding by traders.
Significantly, the State Government has not imposed VAT on sugar imported from other countries.
The Chief Minister, Mr K.Rosaiah, mentioned how they refrained from imposing VAT on sugar with a view to checking the price rise and also help make available this major commodity to the end consumer.
While the levy percentage for sugar has been increased to 20 per cent for the year 2009-2010, the factories are not taking up the allotted quantities by the State citing one reason or the other. According to Mr Rosaiah, this is affecting the public distribution system (PDS) supplies as the quantity allocated by the Centre is inadequate.
The State Government is keen that the card holders are provided at least one kg sugar per month. The Centre has been called upon to provide additional sugar to meet the requirements.
FALL IN FARM OUTPUT
Referring to overall foodgrain production in the State, the Chief Minister saidthe production is likely to fall from 142 lakh tonnes to 98 lakh tonnes this year mainly due to drought in most parts of the State followed by floods in some districts leading to crop loss. This fall in production is likely to impact availability of raw rice within the State.
However, when the State manages to produce more, as in the last four years, it is faced with shortage of storage space. This also results in drop in prices. The Chief Minister called upon the Centre to help add storage space by encouraging creation of additional infrastructure under public-private partnership.
Source : Business Line