Govt may allow inter-selling of imported raw sugar

The Centre is reported to have decided to allow selling of imported raw sugar lying at ports by one mill to another. This step will quicken the processing of the sweetener and augment domestic supply.

The decision was taken at a meeting today called by Prime Minister Manmohan Singh and attended by Food and Agriculture Minister Sharad Pawar and representatives from the industry, a source close to the development said.

Nearly 900,000 tonnes of raw sugar imported by millers are lying idle at ports after the Uttar Pradesh government banned processing till the end of crushing season (March) in response to farmers’ protest over cane pricing.

“In addition to the issue of processing imported raw sugar, the overall price situation was also discussed,” the source said, adding it was agreed that “outright sale of imported sugar” should be allowed. The Food Ministry will issue the necessary notification.

Earlier this month, the Cabinet Committee on Prices (CCP) had allowed millers in Uttar Pradesh to process imported raw sugar in other states, following the ban imposed by the state. However, the processing is yet to start because of Uttar Pradesh millers and Maharashtra mills disagreeing over processing charges.

While Uttar Pradesh mills want to pay not more than Rs 4,000 a tonne, mills in Maharashtra and Gujarat are asking for about Rs 6,000 a tonne.