NEW DELHI: The government plans to allow food processing companies like soft drink and ice cream manufacturers to import raw sugar at zero duty in its efforts to keep the prices of the sweetener at a reasonable level. At present, the food processing comp anies are allowed to import only refined sugar at zero duty.
The proposal mooted by the Food Ministry has received the approval of the Finance Ministry, sources said, adding that this would help in augmenting domestic availability and keeping sugar prices at reasonable level.
About 60 per cent of the country’s total sugar demand of 23 million tonnes is from bulk consumers, like manufacturers of soft drink, ice-cream, biscuit and confectionery.
The bulk users may be asked to tie up with a domestic refiner for processing the imported raw sugar, sources said.
The government has allowed duty-free import of raw and refined sugar from April last year to bridge the demand-supply gap. So far, over six million tonnes have been imported. The duty-free import is allowed till December this year.
With sharp fall in domestic prices in last two months, the industry has demanded that the government should re-impose the duty on sugar imports.
However, Food and Agriculture Minister Mr Sharad Pawar had yesterday said that as of now there is no proposal.
Sugar prices in the retail market of Delhi have declined to Rs 35 a kg from Rs 48 in January on expectation of higher output in this season and government’s measures like stock limit order on bulk consumers.
Source : Business Line