The coverage of the sugar subsidy scheme introduced with effect from June 2013, after de-regulation of sugar sector, targeted Below Poverty Line (BPL) population (inclusive of poorest of poor person in the country i.e. AAY families) and all the population of North Eastern States/ Special Category States/ Hilly States and Island Territories. Now, the NFSA is being universally implemented in the country. There is no identified category of BPL under the NFSA. However, the Antyodaya Anna Yojana (AAY) beneficiaries are clearly identified. As such, the Government of India has reviewed the Sugar Subsidy Scheme and decided to continue it for AAY families with effect from June, 2017. The Central Government is reimbursing a fixed subsidy of Rs. 18.50 per kg @ 1 Kg per month per AAY families to participating States/UTs.
Under the sugar subsidy scheme, the State Government/UTs are required to procure sugar from the open market through a transparent system and make it available to the beneficiaries i.e. AAY families under the PDS.
At present, 18 States/UTs are participating in the sugar subsidy scheme, under which sugar is being distributed/sold through the Public Distribution System (PDS). Names of these States/UTs are at Annexure.
Under the sugar subsidy scheme, the sugar is being distributed to AAY families. The Central Government is reimbursing a fixed subsidy of Rs. 18.50 per kg @ 1 Kg per month per AAY families to participating States/UTs.
This information was given in a written reply by the Minister of State for Consumer Affairs, Food & Public Distribution, Shri Danve Raosaheb Dadarao in the Lok Sabha today.
