NEW DELHI, May 2 : BJP today alleged that the Congress-led UPA government had indulged in a Rs 400 crore sugar scam to finance its electioneering, reports PTI. BJP spokesperson Prakash Javadekar termed as “amusing” the government decision not to ban exports even now when there is a shortage of sugar in the country and its prices were shooting up.

“The government allowed some traders to import raw sugar at Rs 16 per kg and sell it after reprocessing at Re 1 per kg. However, it allowed them to retain the stock and made concession of three years for re-export. Some who imported 20 lakh tonnes of raw sugar under Advanced License Scheme sold it for Rs 27 per kg,” Javadekar alleged.

He said this was nothing but “loot” of the country. “It is believed by the experts that the UPA government made Rs 400 crore through this concession by charging Rs 2 per kg on 20 lakh tonnes for its election fund. Government allowed forward trading and deliberately increased stock limits from 500 quintals of sugar. The hoarding has resulted in price rise,” he said.

Javadekar also accused the government of encouraging cartelisation in the cement and steel market.

The saffron party promised to bring down prices within three months of assuming office. “BJP assures that it will control the prices within first three months of assuming power,” he said.

Javadekar accused the UPA government of betraying the common man by “failing” to control the price rise of food grains, pulses, edible oil, vegetables and fruits.

He also said the sugar prices have skyrocketed and crossed the Rs 30/kg mark in many parts of the country. “Sugar price in January was Rs 20 per kg. It has seen a scandalous 50 per cent rise in 100 days. The price rise of sugar and other essential commodities is a story of scandal and overall failure in managing the economy,” Javadekar said.

The price of sugar has risen as the government has failed to assess the demand and supply of the essential commodity, he said. “As farmers suffered heavily last year on the sugarcane prices, this year sugar production was bound to get hit. The government failed to take timely action to save the day,” Javadekar said.