To check the sharp rise in sugar prices, the Union Cabinet on Wednesday approved a proposal to enable States and Central agencies to impose stock holding limits on dealers.
An official release said: “The government has taken stock of the availability of sugar and different factors contributing to rise in market prices of sugar across the country.”
This government’s latest move will empower State and Central agencies impose stock limits and regulate supply, distribution, storage and trade of sugar to bring down its prices to a reasonable level by curbing unscrupulous trading, it added.
Sugar prices at the retail level have been rising since late last year after a dip in production. By early this month, it had crossed ₹40 per kg.
Earlier this month, the Centre had asked States to impose stock holding limits under the Essential Commodities Act. “Keeping in view the sugar price trend, we have asked the State governments as a precautionary measure to impose stock holding limits on traders to check hoarding,” Food Minister Ram Vilas Paswan had said at the time.
Even as it moved on sugar, the Cabinet meeting, however, did not take up a key proposal to allow 100 per cent foreign direct investment (FDI) in marketing of food products produced and manufactured in India. Though the proposal, announced in Budget 2016 with a view to lifting agriculture productivity and boost the domestic industry, was listed on the agenda, sources said it was not taken up.
₹3,000-cr investment in BORL
By another decision, the Cabinet approved a higher investment of up to ₹3,000 crore by Bharat Petroleum Corporation Ltd (BPCL) in Bharat Oman Refineries Ltd (BORL).
The fund infusion will help BORL improve its balance sheet; its net worth has eroded. “The measure will also enhance the availability of petroleum products in the northern and central parts of the country,” said the release.
Farm land for solar power
The Cabinet also approved the utilisation of 400 hectares of farmland at the Central State Farm in Sri Ganganagar (Rajasthan) for setting up a 200 MW solar power plant.
In another decision aimed at enhancing bilateral cooperation in the financial sector, the Union Cabinet gave ex-post facto approval to the memorandum of understanding (MoU) between the Insurance Regulatory and Development Authority of India (IRDAI) and the Insurance Authority of the United Arab Emirates. “The MoU provides for enhanced cooperation between the two authorities in the field of insurance supervision by providing a framework for cooperation such as channels of communication,” said the release, adding that it was signed in February.
The Cabinet also approved the signing of an MoU between India and Papua New Guinea on cooperation in healthcare and medical science.