Who Is Afraid of Economists

These developments render the governments decision, just before the end of the previous season, to import 2 lakh tonnes of sugar all the more in- explicable. The entire quantity has reportedly been imported and 1.89 lakh tonnes already distributed through the public distribution system. Apart from the needless expenditure of foreign exchange, the import of sugar has involved a fiscal loss for the government. The ex-god own cost of imported sugar is reported to be Rs 5,200 per tonne, whereas the government will recover from the States and Union Territories a price of less than Rs 3,656 per tonne.