NEW DELHI: The food and public distribution ministry has shrugged off the demand from states for an alternative to self-procurement of sugar for public distribution system (PDS).

Calling it a case of pure "lethargy" on the part of states, the ministry is in no mood to bend the rules. "States want a hands-off policy for sugar procurement. It was a cabinet decision to pass the control of sugar PDS to state governments. State-specific changes cannot be made in it. We are pressing states to start the tender process and procurement soon," said a source with the food and public distribution ministry.

Starting June of this year, the Centre will stop procuring sugar from mills for ration shops across the country.

States will have to buy it from open market through tendering and sell at a subsidised price at ration shops, while the Union government will pay the subsidy amount.

Six states - Delhi, Andhra Pradesh, Tamil Nadu, Madhya Pradesh, Kerala and West Bengal - have floated tenders for procurement of sugar till date. Major sugar producing states Uttar Pradesh and Maharashtra are yet to float tenders.

Northeastern states and Jammu & Kashmir have requested the Centre to either grant them an extension to build the required infrastructure or design an alternative programme.

"Enough time was given to states to get a system in place for public distribution of sugar and they should start doing it now rather depending on the Union government or Food Corporation of India," said the official.

ET reported on Tuesday that northeastern states and Jammu & Kashmir are seeking government support till they get public distribution infrastructure in place. These states have cited lack of storage facilities and transportation hassles as the reason.

The ministry, however, is planning to disburse an advance amount of subsidy to the states to help them in procurement and public distribution of sugar.

Ministry officials said the finance ministry would soon clear a token amount for states to speed up sugar PDS rollout.

"We are writing to state governments everyday to launch sugar PDS programmes. The only assurance we can give is disbursing some subsidy to help them procure sugar from the open market. Now that the price of sugar has come down, the delay seems to be irrational," said the source.

The average sugar price in the open market has come down to Rs 32 from Rs 36 six months ago. The market price of sugar in north India is around Rs 30-32 per kg and Rs 29.5-31 per kg in Maharashtra and south India.