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In view of surplus stocks, the Indian Sugar Mills Association (ISMA), the apex body of private mills in the country, has opposed the import of raw or white sugar this year.
Further, the industry body has demanded that import duty on raws and whites be increased to 25 per cent from 10 per cent at present.
In a letter to the Prime Minister’s Office, the Commerce and Food Ministries, ISMA said that current stocks and estimated production in the 2012-13 season would be sufficient to meet the domestic requirement and there was no need for imports.
ISMA’s opposition to imports comes at a time when mills in the South, mainly Maharashtra, are demanding duty-free import of raw sugar to tide over the cane shortage.
Food Minister K.V. Thomas last week hinted at the possibility of a revision in duty on both raw and white sugar imports in a couple of weeks.
The sugar body estimates that production in 2011-12 season stood at 26.34 million tonnes against the earlier projections of 26 mt.
Similarly, exports during 2011-12 stood at 3.33 mt against the initial estimates of 3.5 mt. Thus, the year ending stocks, as on September 30, were higher by almost half a million tonne at 6.5 mt against the earlier estimates of 6 mt.
However, ISMA maintained that late rains in Maharashtra and Karnataka had helped improve the yield and recoveries and the crop condition was also not as bad as predicted earlier.
Production for 2012-13 is pegged at 24 mt. According to the Government estimates, opening sugar stocks stood at 6.2 mt. It has pegged the 2012-13 output at 23 mt.
“With the carry-over stock of 6.5 mt and sugar production of 24 mt, availability in 2012-13 would be more than sufficient to meet the domestic requirement,” ISMA said.
The projected consumption is seen at a little over 22 mt for 2012-13.
The industry body said that the landed cost of imported sugar was almost comparable to the domestic sweetener.
The import duty of 10 per cent is still holding back unnecessary imports into the country.
“However, with the rupee appreciating and with any fall in the international raw sugar prices and improvement in domestic prices, there could be large-scale raw sugar imports even at 10 per cent duty,” ISMA said.
The imports would depress the prices and may have a direct impact on payment of cane price, which could impact cane availability in 2013-14 year.
>Vishwanath.kulkarni@thehindu.co.in
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