Food Ministry plans to allow raw sugar import

NEW DELHI: With no firmed up figure available yet on the estimated shortfall in sugarcane output this season and sugar prices shooting up, the Ministry of Food is moving to seek the permission of the Cabinet Committee on Economic Affairs (CCEA) for importing raw sugar.

The Ministry plans to take ‘in principle’ permission to allow mills to import raw sugar under the advance licence scheme at nil duty and with the obligation on mills to export raw sugar after refining on tonne-to-tonne basis.

The sugar industry, which was resisting the move earlier, is reported to have come around to the idea, allowing mills to crush for a longer duration and thereby increasing sugar availability in the domestic market. The last time such a facility was given to the industry was in 2004, when imported raw sugar had to be refined and exported in 24 months.Sugarcane output is expected to fall due to low acreage of the crop followed by erratic weather conditions especially in Maharashtra, Karnataka and parts of Uttar Pradesh. Sugar prices have already risen in most retail markets to Rs. 21 per kg from Rs. 17 per kg during the corresponding period last year.

It is estimated that sugarcane production this year would fall from last year’s level of about 263 lakh tonnes to between 190 to 200 lakh tonnes. With a carryover stock of 105 lakh tonnes and export of about 48 lakh tonnes this year, the government is worried about sugar prices on the eve of the elections.Raw sugar import would also enable factories to crush for longer period as the white sugar for export would have to be processed from the imported raw sugar.