Keeping the festive season in mind, the Manmohan Singh government, which is on a reforms-fiscal correction mode, hit the pause button on Monday, deferring a decision on scrapping subsidy on levy sugar under the public distribution system (PDS) quota. Removing the subsidy would have meant a steep hike in the price of the commodity to Rs 23 per kg from Rs 13.50/kg.
The relief is expected to last till December.
The Cabinet also did not take up the proposal to computerize PDS, a move aimed at digitizing ration cards, and fully computerize the supply management chain of the Food Corporation of India.
But in a major relief for the common man, the Union Cabinet on Monday extended a control order on commodities from October 2012 to September 2013, which will help moderate prices of pulses , edible oils and oilseeds and ensure their availability at fair prices.