New Delhi, Jan. 13 In a desperate effort to rein in spiralling prices, the Centre has allowed duty-free import of white sugar without any quantitative cap up to December 31, 2010.
So far, only raw sugar could be imported at zero duty up to December 31, with this facility being available only till March 31 in the case of white/refined sugar. The Cabinet Committee on Prices (CCP), which met here on Wednesday, decided to extend the duty-free window for white sugar imports as well to end-December.
Simultaneously, the actual user condition requiring processing of raws by the same mill that has contracted the imports has also been dispensed with. This will enable mills in Uttar Pradesh to get the raw sugar imported by them processed outside the State. About 9 lakh tonnes (lt) of such sugar are currently lying unprocessed in the west coast ports, following the UP Government's ban on entry of imported raws into the State.
Speaking to presspersons, the Union Food and Agriculture Minister, Mr Sharad Pawar, expressed optimism that the latest measures would help boost supplies in the market. Sugar is currently retailing at around Rs 47 a kg in Delhi, having ruled at Rs 38 levels only three weeks ago.
The CCP meeting also decided to offload 20-30 lt of grains from the Food Corporation of India's (FCI) stocks in the open market "on priority" over the next two months. This is in addition to the 20 lt wheat and 10 lt rice already allocated to States over and above their regular ration quota.
Mr Pawar, however, admitted to very poor lifting of the allocated quantities by the States - a mere 1.59 lt in case of wheat and 2.09 lt for rice. "The Prime Minister will be meeting Chief Ministers later this month to ensure better lifting so that the grain reaches the retail consumers. We will also distribute up to 5 lt of wheat and 2 lt rice through Nafed and other consumer cooperatives," he added.
The Minister said that the FCI had sufficient stocks in its godowns. As on January 1, wheat inventories in the Central pool, at 230.67 lt, were way above the required minimum buffer of 82 lt, while the corresponding figures for rice being 242.12 lt and 118 lt.
Source : Business Line