The government on Tuesday informed the Delhi High Court that it has decided to pay more for sugar it purchases from millers, but said it was working on the details.
During the proceedings in the court, which is hearing a petition by Uttar Pradesh millers who have challenged the average rate of Rs 1,322 a quintal fixed by the Centre in January this year, the government said the Cabinet Committee on Economic Affairs on Monday decided to revise the price.
Ten per cent of millers’ total production is sold to the government, technically called ‘levy sugar´, for distribution through ration shops.
“Re-fixation of ex-factory levy price of sugar has been approved by the CCEA. Thereafter notification will be issued,” Additional Solicitor General AS Chandiok informed a division Bench, comprising Justices BD Ahmed and Veena Birbal.
Chandiok said the details were awaited, following which the court decided to hear the matter again in ten days.
The Food Ministry had proposed to the CCEA that the average levy price be increased to Rs 2,200 per quintal. Currently, the Centre purchases sugar at a price range of Rs 1,220.90-1,430.94 a quintal from various states, which works out to an average of Rs 1,322 a quintal.