Notwithstanding Agriculture Minister Sharad Pawar expecting sugar
production exceeding the total domestic demand of 23 million tonnes in
the next marketing year from October 1, India allowed the bulk users
like soft drink, ice cream and biscuit producers to import raw sugar tax
free until April 1, 2011.
These bulk users who account for 60 per cent of demand were so far
allowed the duty-free import of refined sugar but the government decided
to waive 60 per cent custom duty also on the raw sugar, so as to build
up enough stocks of sugar to bring down the prices.
India has so far allowed sugar mills to import duty-free raw sugar, so
as to meet the shortage as its sugar production during the current
marketing year ending September 30 is expected to be around 18 million
tonnes, which is five million tonnes less than the domestic consumption.
Pawar is, however, confident that the country’s sugar output will exceed
demand in the next marketing year. He, however, refused to commit if it
would mean levying back of duty on sugar imports allowed for the last
two consecutive years to meet the domestic shortfall.
India imported 3.17 million tonnes of sugar until third week of March,
up from 2.52 million tonnes in the entire 2008-09 season.
Pointing out that the sugarcane plantation in the key sugar producing
states like Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu and Madhya
Pradesh on the rise, Pawar said a decision on reviewing the decision to
allow tax-free sugar imports would be taken only after assessing the
demand-supply situation.
With fall in domestic prices over the past month, the industry has
demanded that the government should re-impose the duty on sugar imports.
Pawar, however, ruled out any immediate decision as he said the
government wants India stock up more sugar than the domestic demand for
the next 10 months before any review takes place.
The bulk users are not allowed to hold stocks beyond ten days, but the
new notification issued by the Central Board of Excise and Customs on
Wednesday says this rule will not apply to the imported sugar.
Earlier, food processing companies were allowed to import only “refined
sugar” at zero duty.
Source :