India unlikely to allow import of refined sugar duty free

New Delhi (PTI): India is unlikely to allow import of refined sugar at zero duty before the general elections in April and May, Commerce Secretary G K Pillai said on Saturday.

"The issue is before the Cabinet...it was not taken up in the last meeting. I don't think any thing will happen before (the) elections," Mr. Pillai told reporters at a function of the Indo-American Chamber of Commerce here.

The Cabinet on Monday did not discuss any cut in the 60 per cent import duty on refined sugar. Moreover, the government needs to take the approval of the Election Commission before announcing any such measure even after the Cabinet decides on the issue.

The government had recently allowed sugar mills to import raw sugar at zero duty till September this year for sale in the domestic market. These imports would be under advance licence scheme and on 'tonne-to-tonne' basis, which means that mills would have to export the same quantity later.

Sugar prices in the domestic market have risen by up to 30 per cent since October as production is estimated to fall to 160 lakh tonnes in 2008-09 season (October-September) from 264 lakh tonnes in the previous year.

Industry experts said the government may bring down the import duty to zero level on refined sugar as it could not afford to make consumers pay higher when elections are round the corner.

source: hindu