Decision on sugar import duty in a week: Pawar

The government may take a decision on imposing import duty on sugar within a week.

“It is in the process. We may decide in a week or so,” Agriculture Minister Sharad Pawar said when asked whether the government was considering import duty on sugar.

The industry has been demanding import duty on refined sugar as the prices of the sweetener have fallen in the domestic market by about 30 per cent in the last four months. Sugar prices, which were nearly Rs 50 a kg in mid-January, have declined to Rs 32-33 a kg now in the national capital.

Presently, duty-free import of both white and raw sugar has been allowed till December 2010. India, the world’s second largest producer and the largest consumer, has imported over six million tonnes of sugar since February 2009—when import was allowed—to augment domestic supply and curb price rise.

Last month, Pawar said the government would consider imposing import duty on sugar after assessing the production scenario of the ongoing 2009-10 crop year (October-September) and outlook for the next crop year.

India’s sugar production is expected to increase to 18.5 million tonnes in the ongoing crop year from 14.7 million tonnes last year. Initial estimate was that the country would produce 16 million tonnes in the current crop year.

Asked when the government would announce support price of kharif crops as sowing had begun, Pawar said the minimum support price (MSP) would be announced in the next 7-10 days.

He declined to share the proposed increase in MSP but said “it will be positive for farmers”. About monsoons, Pawar said rains had just started and it was yet to be seen how it would be distributed across the country.

Asked about the proposed increase in rates at which the Centre buys levy sugar (meant for ration shops) from mills, he said the food ministry had sent the proposal to the finance ministry in this regard.

The average price of levy sugar currently is Rs 13.22 a kg, while the central issue price of levy sugar is Rs 13.50 a kg.