An empowered group of ministers (eGoM) on food is expected to meet on Friday to discuss imposing import duty on white sugar and reduction in quantity of sugar that the government buys from mills for supply through ration shops, known as levy sugar.
Sources said the eGoM, headed by finance minister Pranab Mukherjee, could also discuss the draft Food Security Act and take a call on allocating additional quantities of wheat under the ongoing Open Market Sale Scheme, along with discussing the import duty on wheat.
Sources said the group of ministers could consider the proposal to reduce the percentage of levy sugar from 20% to 16% .
Presently, sugar mills are obligated to supply 20% of their production to the government for ration shops.
However, sugar mills have been demanding reduction in the quantity of sugar that they sell to the government for PDS needs and imposition of import duty on refined or white sugar as sugar prices in the retail markets have dropped by more than 30% since the time these steps were taken.
Meanwhile, sources said the food ministry is understood to have proposed 15% duty on white sugar.
At present, duty-free import of both raw and white sugar is allowed till December this year. Earlier, the customs duty was 60% .
Sources said the eGoM is also likely to discuss issues relating to fixing the number of beneficiaries to be covered under the proposed food law and increasing the quantity of wheat and rice provided every month to BPL families from 25 kg to 35 kg a month.
The draft food security Bill seeks to provide a fixed quantity of foodgrain at Rs 3 per kg to below poverty line (BPL) families every month.