No duty-free sugar imports: Pawar

Union Agriculture Minister Sharad Pawar, on Monday rejected demands from millers to allow duty-free imports of raw sugar against an obligation to export.

“Considering the domestic consumption, there will not be any requirement of imports,” Pawar told the annual general meeting of the National Federation of Cooperative Sugar Factories. The industry body’s president, Jayantilal Patel, earlier said India should allow imports of raw sugar, like it did in the 2004-05 season.

Patel said India’s sugar output was estimated at about 20 million tonnes for the year from October and this would fall short of likely domestic consumption of 22.5 million tonnes.

Pawar said opening stocks in the new sugar season were estimated to be about 11 million tonnes, while output was likely to be 22 million tonnes.

Currently raw sugar imports attracts a duty of 60 per cent. If duty free imports is allowed, mills can refine it and export within a stipulated period.

Pawar also said that the petroleum ministry and oil marketing companies should consider raising the ethanol price and link it to crude oil prices.