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Minister Yadav claims government powerless in capping sugar price
The government claims that it is powerless in maintaining the sugar price at Rs63 per kg and expressed discontent over the intervention by Parliamentary Public Accounts Committee (PAC).The government claims that it is powerless in maintaining the sugar price at Rs63 per kg and expressed discontent over the intervention by Parliamentary Public Accounts Committee (PAC).
Organising a press meet on Friday, Minister for Industry, Commerce and Supplies Matrika Prasad Yadav expressed his bitter resentment on the parliamentary committee’s direction to fix sugar price at the prescribed rate.
“Fixing the market price is not under the jurisdiction of the parliamentary committee. The government is also not liable to strictly follow such atypical direction forwarded by the committee,” Yadav said. The Minister’s response comes hot on the heels of the PAC issued directive on Thursday.
The PAC had issued a directive on Thursday, commanding the government to keep sugar price at Rs63 per kg. This directive is aimed at preventing the price of the sweetener from skyrocketing during the Dashain, Tihar and Chhat festivals.
The committee has sought the government to fix the price as per the agreement made between the government and private sugar mills on September 16. “It is surprising how the parliamentary committee can take such a decision unilaterally without consulting the concerned government agency,” Yadav said.
Sugar is one of the fastest selling and in-demand items during festivals. According to the Ministry of Industry, Commerce and Supply, the demand for sugar during the month-long festival of Dashain, Tihar and Chhat soars to 30,000 tonnes from normal monthly consumption of 8,000 tonnes.
At present, sugar price hovers at Rs85-90 per kg in the local market, a rise by Rs20-25 per kg over the last few weeks. The government is under fire for the price surge of the sweetener as it recently imposed the quantitative restriction on the sugar import.
Although private sugar mills expressed their commitment to maintaining stability in sugar price prior to the government action, a possible cartel has been suspected for the soaring price of the sweetener. Citing possible malpractice, the parliamentary committee had ordered the government to maintain sugar prices at the prescribed rate.
The PAC’s direction comes as a shock to the Ministry at the time when the government had planned to maintain a sugar price ceiling at Rs70 per kg. Yadav said the Ministry was not in a position to implement the PAC’s direction. “We will be taking the issue to the Prime Minister before making our next move.”