The Maharashtra government has swung into action to tide over the situation that has risen due to drought in the state.

The Congress-NCP government, in a run up to the assembly elections expected to take place in October, proposes to bear a subsidy burden of Rs 500 crore for at least next three months to freeze the prices of five essential commodities distributed under public distribution scheme (PDS).

These commodities include rice, wheat, sugar, tur dal and palm oil. The government’s proposal would benefit nearly 1.46 crore above poverty line (ABL) ration card holders and around 60 lakh below poverty line (BPL) ration card holders in the state.

The state government wants to supply sugar for APL families in addition to BPL under PDS. This is in line with the centre’s proposal in this regard.

Against the market price of Rs 30 per kg, the sugar will be made available at Rs 20 per kg for both APL and BPL ration card holders. The state cabinet meeting chaired by chief minister Ashok Chavan discussed the issue on Thursday and the cabinet is expected to take a final decision at its meeting slated for Friday. The government’s move is essential in view of soaring prices of these commodities largely in view of existing drought situation.

?The government under such circumstances cannot be silent observer. The government will bear the subsidy burden for this purpose,? state cooperation minister Harshvardhan Patil told FE on Thursday.

Against the market price of wheat of Rs 14 per kg, it would be supplied at Rs 7.20 per kg for APL and Rs 5 per kg for BPL. In case of rice, the government has proposed to sell it at Rs 9.60 per kg for APL and Rs 6 per kg for BPL as against the current market price of Rs 13.60 per kg.

Tur dal, which is being sold at around Rs 90 per kg, however, the government intends to supply it at Rs 55 per kg for APL and BPL ration card holders.

In case of palm oil, against the market price of Rs 45 per kg, it will be sold at Rs 30 per kg for APL and BPL ration card holders.

Menawhile, Patil at a function organised by the Federation of Cooperative Sugar Factories, a representative body of over 170 cooperative mills in the state, exhorted them to cooperate with the state in such trying times.

“Cooperatives will not lose as they will be subsidised by the government,” Patil said. Painting a bleak picture of the sugar scenario, Patil said that sugarcane availability for crushing season 2009-10 is expected to be quite lower at 400 lakh tonnes against the previous projections of 435 lakh tonne and 410 lakh tonne.

He clarified that the crushing license would be granted to those mills which have sugarcane availability of 50% of their crushing capacity.