Sugar re-export time extended to Mar ’11.

he Centre has allowed mills, which had imported raw sugar under the Advanced Licence Scheme (ALS), to fulfil their re-export obligations till March 2011, thus withdrawing the option of paying the applicable duty instead.

About a million tonne of sugar was imported in 2004-05 on a tonne-to-tonne basis and the Centre has consistently been extending the period for re-export . The mills were required to re-export within 36 months, that is, by March 2008.

The projections of sugar output for this and next year are good. In such a situation, the government feels it is better that sugar mills actually export rather than take the second option of paying up the duty relief availed at the time of imports.

“It is better to have them re-export , especially since the sugar production , availability and price situation have improved manifold compared to January-February this year,” a food ministry official said. Duty dues are estimated at well over Rs 20,000 crore.

Under the advance licensing scheme, mills are allowed to import raw sugar at zero duty against a future export commitment. In the tonne-to-tonne scheme, sugar mills would have to re-export refined sugar equal to quantum of imports.

Some 6.15 m tonnes of sugar has been imported so far by mills, of which some 2.5 m tonnes was carryover from last year. 3.65 lakh tonnes was imported this year.

In view of projected shortages, the government had also not placed any re-export conditions on raw sugar imported up to December this year.

Last month, food minister Sharad Pawar had indicated at a press interaction that sugar export could be eased in the coming sugar year on account of good sugar output projections.

Currently, both sections of trade and government estimate that in 2010-11 , India could produce around 24-25 m tonnes of sugar if the monsoons are good.


Source :- economictimes.indiatimes.com