Jaya bitter about sugar decontrol

Chennai (PTI): Tamil Nadu government, on Thursday, strongly protested against the Centre's decision to partially decontrol sugar sector, saying that the move to remove levy obligation on sugar mills and decontrol the regulated release mechanism will adversely impact supply of the sweetener through PDS. Chief Minister J Jayalalithaa said that there was no clarity over the continuance of the Centre's subsidy scheme in this matter beyond the financial year 2014-15.

At present, levy sugar released to Tamil Nadu by the Centre was 10,835 MT per month, which met only one third of the total requirement for distribution under PDS. Her government was already incurring heavy expenditure towards providing subsidy for supply of sugar through the PDS, she said in a letter to Prime Minister Manmohan Singh. Under the new dispensation, Centre will provide a subsidy of Rs 18.50 per kg, only for the quantity committed under levy, but to be procured in the open market, with a rider to retain the retail price of Rs 13.50 per kg at Fair Price Shop levels, she said. The State had been informed that this subsidy by the Government of India would be available only for the financial years 2013-2014 and 2014-2015.

...seeks Rs 2,500cr from Karnataka The Tamil Nadu government has approached the Supreme Court seeking around Rs. 2,500 crore from Karnataka for loss of crops due to non-release of Cauvery water during the irrigation year 2012-13 as per the interim award of the Cauvery Water Disputes Tribunal. Tamil Nadu has sought Rs 1,045.7 crore towards loss of crops, bio-mass and power generation due to non-release of water as per the Interim Order and Rs 1,434 crore as punitive damages for "deliberate non-compliance" of the decision passed by the Tribunal. "It is most respectfully prayed that this court may be pleased to pass a judgement and decree against the state of Karnataka to pay damages of a sum of about Rs 1,045.7 crore towards loss of crops, loss of bio-mass and loss of power generation, on account of non-release of water during the irrigation year 2012-13 as per pro rata share of water as per the Interim Order dated June 25, 1991," the Tamil Nadu suit said.