DGFT allots 60% of 500,000 tonne duty-free raw sugar import quota to south

West zone takes 30%, while 10% is allocated to a single company in the east

The government announced 500,000 tonnes raw sugar import quota on Thursday, of which 60 per cent has been allocated to mills in the south and 30 per cent to those in the west. The remaining 10 per cent or 50,000 tonnes has been allocated to a single company in the east zone. Raw sugar import of up to 500,000 tonnes was allowed duty free at the beginning of the month, in order to meet shortfall following sharp fall in production. Sugar production is expected to fall to 20.3 million tonnes this season (October 2016 to September 2017).

The Exim Facilitation Committee (EFC) under the Director General of Foreign Trade had taken a decision on the allocation of sugar import quota in a meeting held on Wednesday.

The minutes of the EEC meeting said that the allocation was based on a formula under which the zonal allocated quantity was divided by total monthly capacity of all the applicant mills/units within the zone and then multiplied by the refining capacity of the applicant unit. Out of the 500,000 tonne quota, south india mills/refineries got the bulk, consisting of 300,000 tonnes, or 60 per cent.

DGFT stated, "Those applicants who do not want to avail the import quota of raw sugar allocated under this scheme may even now opt out by writing to their respective regional authority not to issue license before 5 pm of 28th April, 2017. Once the license is issued and the applicant does not import raw sugar, the penalty provision will be applicable".

As per the minutes, in the east zone, Shree Renuka Sugars Limited (Haldiya) had asked 150,000 tonnes import but was given 50,000 tonnes.

In the south, 40 companies including EID Parry, Shree Renuka, Bannari Amman, Kothari Sugars, Dalmiya Bharat and others had applied for total import of 1.95 million tonnes but have been allocated 300,000 tonnes collectively, the highest in any zone and 60 per cent of the total import quota. The southern and western zones had borne the brunt of losses due to poor sugarcane crop.