The government is considering the import of refined sugar to tackle the rising prices of the commodity.
The customs department has been briefed to keep logistics ready to clear the cargo immediately, since the item is highly perishable.
India will import refined sugar, if it does so, for the first time since 2005-2006.
Officials close to the development said the proposal was aimed at controlling the sugar prices which may go up sharply, given the output deficiencies.
“At present, the government is watching the situation and if the prices continue to remain high, a decision will have to be taken fast,” an official said.Officials even added that measures were being worked out to tackle the cost factor, which may arise on selling imported sugar.
At the current global price, the cost of the imported sweetener comes to Rs 35-36 per kg and it needs to be sold at at least Rs 45 per kg, experts said.
Similarly, to rein in prices of vegetables, the government is also considering importing vegetables, especially potatoes and tomatoes, for the first time. Officials added these would be improved varieties, compared to indigenous ones and have a longer shelf life.
Earlier this year, the government had allowed the import of raw sugar for refined and domestic consumption against export of refined sugar. Besides, as an anti-hoarding measure, the port charges for storing sugar and pulses were raised sharply to force traders to vacate godowns immediately after custom clearance.
Similarly, the Ministry of Consumer Affairs has directed that no bulk consumer could store sugar beyond fifteen days’ requirement in its godown. The fifteen-day requirement will be calculated on an average basis and approved by a chartered accountant.
Bulk consumers are those who use more than ten quintals of sugar annually.
India’s sugar production is estimated at 16 million tonnes this financial year, against 14.7 million tonnes last year, while the estimated total annual consumption is pegged at 23.5 million tonnes. During 2008-09, the government had the cushion of carryover stocks of 9.5 million tonnes. Besides, output bottlenecks, another reason for delay in production is discontent of sugarcane farmers over the government ceiling (fair and remunerative price, or FRP) fixed for cane sugar at Rs 129.82 per quintal. Cane is the raw material used for refined sugar.
Earlier, the government had raised statutory minimum price (SMP) to Rs 107 per quintal from Rs 82.25 per quintal last year.
Source : Business Standard