NEW DELHI: The city government on Monday announced that it will continue to provide sugar to 3.64 lakh poor families through ration shops at a subsidized rate of Rs 13.5 per kg. The assertion came with a reminder that the government has taken this stand despite the Centre stopping supplies after decontrolling of the sugar sector.

Under the de-control policy, states are supposed to buy sugar from the open market. The difference between the public distribution system (PDS) price and the ex-mill price of Rs 32 per kg will be given by the Centre as subsidy to the states.

"The cabinet has decided to continue supply of sugar at Rs 13.5 per kg under the PDS to 3.64 lakh BPL and Antodaya Anna Yojna ration cardholders even after de-control of sugar by the Centre," said chief minister Sheila Dikshit. The CM said the government would procure 2,200 metric tonnes of sugar per month through the Delhi State Civil Supplies Corporation Ltd from open market using competitive bidding. The difference in cost between the procurement price and the subsidy by the Centre would be borne by the government. "We have have decided not to discontinue the benefit," Dikshit said.

Dikshit had reiterated on Sunday that her government was "gearing up" for rolling out the food security scheme on August 20 and the families to be covered under the ambitious programme will be given a card for proper identification and to ensure that food grains reach the beneficiaries. The food grain distribution chain will be fully activated from September 1.