Restore duty on sugar imports: Mills body.

The Indian Sugar Mills Association today demanded re-imposition of import duty on sugar to maintain adequate availability and price stability.

The association's committee member and former president O P Dhanuka said here today that production in the coming season would be adequate and it is estimated that during 2010-11 sugar availability, including carry-forward stock, production and imports, would be around 299 lakh tonne. Out of this, import would be a modest 20 lakh tonne, while production would be at 240 lakh tonne.

Dhanuka said duty on imported sugar would also help maintain price stability during the coming season.

The government had withdrawn duty to allow sugar imports freely as the commodity was in short supply which had led to a massive spurt in prices.

Dhanuka said farmers should also get a fair price for sugarcane, else they would divert production to other crops. Companies like Pepsi, Coke and Britannia should be asked to use imported sugar only.

Dhanuka said the consumption needs of these companies was 20 per cent of the total demand. He said if these companies stopped using domestic sugar, then there would be no shortfall in domestic supply.

Source : Business Standard