SUGAR-Buffer Stock Another Burden on Consumer

Buffer Stock: Another Burden on Consumer ?
Arun Kumar ON July 26, Rao Birendra Singh, the Agriculture Ministry announced in parliament the much-awaited decision of The government regarding the creation of a buffer stock of sugar. The buffer stock is to be built out of the (vce sale quota and kept sequestered with the sugar mills, The mills would obtain for the purpose cent per cent credit from the banks. Further, they would be compensated for the cost of holding the stocks and interest actuals calculated at 19.3 per cent of the quarterly average of the tariff value. These costs in turn are to be provided for by raising the present level of cess on sugar from Rs 5 per quintal to Rs 15 per quintal of the sugar produced.