Question. The Central Government has created a buffer stock of 30 lakh metric ton (LMT) of sugar for which of the following objective?
(a) to improve liquidity position of sugar mills.
(b) to clear cane price arrears of farmers.
(c) to stabilize domestic sugar price.
(d) All of the Above.
Answer- (d)
Related Fact:
- On August 7, 2018, Minister of State for Food, Consumer Affairs and Public Distribution, R. Chaudhary told in Lok Sabha that Central Government has created a buffer stock of 30 LMT.
- This buffer stock has been made to improve the liquidity position of sugar mills, to enable sugar mills to clear cane arrears of farmers and to stabilize sugar price in domestic markets.
- Government has fixed minimum selling price (MSP) of sugar at 29/kg for sale at factory in domestic market to prevent cash loss and to clear cane dues of farmers in time.
- Notably, sugar price has fallen sharply in May 2018 due to excess sugar production and decrease in demand during current season.
- The various interventions including creation of buffer stock and fixation of MSP of sugar undertaken by government aims to improve liquidity of sugar mill thereby reducing price arrears on State Advised Price (SAP)
Refrences:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=181604