With the retail price of sugar touching Rs 50 per kg, Prime Minister Manmohan Singh has reportedly asked the Planning Commission to prepare a strategy paper to check the spiralling sugar prices.
Sugar prices in retail markets have almost doubled in a year and are expected to cross Rs 50 in a week. Retail sugar prices have increased by Rs five a kg in a week.
The government, so far, has expressed its helplessness in tackling the issue, citing rising global prices of sugar -- highest of last two decades -- because of low production of sugarcane in main sugar-producing countries like Brazil.
International sugar prices are expected to increase by another 50 per cent by February-end, news agencies reported.
In wake of these concerns, Singh told plan panel officials on Wednesday to propose measures, which can help the government in providing immediate relief to consumers. “The PM was concerned over rising sugar prices,” a plan panel functionary said.
The commission officials, however, said some interim measures would be presented to the PM by next week.
As an immediate measure, the Union cabinet is expected to consider a proposal of the food ministry to sell sugar at subsidised rates for poverty line families through public distribution system.