Govt won't relax sugar import norms

The government has ruled out easing sugar import guidelines even as the industry stands split on the demand for liberalising the norms.

Under the current guidelines, millers can import sugar duty-free by submitting an undertaking that they will export the same quantity of the sweetener at a later date.

“There is no rethinking on this policy even as some sections of the industry have urged the government to open up import,” a senior government official said.

The sugar industry seems divided on the issue. While co-operatives pitch for relaxed norms, the Indian Sugar Mills Association (ISMA), a body of private mills, has opposed any move to promote imports, saying it would be detrimental to farmers as well as the industry.

“The statistical situation does not at all warrant any import of raw or white sugar. This suggestion has emanated with a trading bent of mind in the interest of traders at the cost of the farmers and the sugar industry,” ISMA has said.

However, co-operatives differ. “As there is shortage of sugarcane this season, we have requested the government to permit import of raw sugar and allow it to be used by mills facing severe crunch,” Maharashtra State Co-operative Sugar Factories Managing Director Prakash Naiknavare said.

According to an estimate of global consultancy firm Czarnikow Sugar, India is expected to produce over 22 million tonnes in 2008-09 season (October-September).

However, the Centre believes that the output would not be less than 20.5 million tonnes and may go up to 22 million tonnes, leaving a domestic availability of about 31.5 million tonnes this year.