'No plans to abolish sugar exports, duty on refined oil'

The government today said there is no proposal to abolish import duty on refined edible oils and no plans to ban sugar exports through Advance License Scheme, under which mills have an obligation to export about one million tonnes of sugar by March. 

"We have no such proposal," Food Secretary B C Gupta told reporters here when asked if the government was planning to waive off import duty on refined edible oils from the existing charge of 7.5 per cent.

There is speculation in the market that the government may abolish import duty on refined edible oils. Already, there is no import duty on crude edible oils. 

Gupta also said the government will not restrict sugar exports under Advance License Scheme (ALS). Under this scheme, mills have imported sugar at zero duty and are required to export similar quantity of sugar by March this year.

The Food Ministry recently referred the matter of allowing exports through Open general License (OGL) to the empowered group of ministers (EGOM) on food.

Earlier, it had allowed five lakh tonnes of sugar exports under OGL, as sugar production is estimated to rise to 24.5 million tonnes in 2010-11 as against the annual demand of 23 million tonnes.

"We will not stop exports under ALS. However, export under OGL has been referred to empowered group of ministers," he said.

The secretary noted that the government has sufficient wheat and rice stocks, and may allocate more wheat to bulk consumers such as flour millers, if they require.

"We have enough stock of wheat and rice. We are open to allocate more wheat to bulk consumers," Gupta said.

The government has already allocated 1.5 million tonnes of wheat to bulk consumers for the January-June period this year.