The Union Government has extended beyond 1 August 2009
the import facility for raw sugar at zero duty without
any export obligation and that of white sugar through
state-owned trading firms to augment domestic supply.
The move has come amid growing apprehension about the
fate of sugar production next season, starting October,
following a decline in the area under sugarcane to 42.5
lakh hectares (as on July 17) from 43.8 lakh hectares
in the same period a year ago.
Earlier in April, the government had scrapped a 60 per
cent import duty on raw sugar and allowed duty-free import
till August 1 under the pen GeneralLicense (OGL) scheme,
under which mills do not have any export obligation.
It had also allowed Minerals and Metals Trading Corp (MMTC),
State Trading Corp (STC) and PEC to import refined sugar up
to 10 lakh tonnes at zero duty till August 1.
According to sugar industry experts, the country has imported
raw sugar of 16.8 lakh tonnes as of now, while another 1.7
lakh tonnes are expected to reach by the end of this month.
Around 29 lakh tonnes have been contracted so far.
Similarly, the PSUs have contracted 1.2 lakh tonnes of refined
sugar so far, out of which 43,550 tonnes have already arrived.
A total of 79,605 tonnes is expected to land here by the end
of this month.
The lower output has resulted in a higher price of sugar,
which is currently selling at Rs 27-30 a kg in retail markets
compared to Rs 16-17 a kg a year before.
India's sugar output in 2009/10 is expected to reach 175 to 185
lakh tonnes, lower than the previously estimated 200 lakh tonnes
due to delay in progress of monsoon.
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