NEW DELHI, Jan 11 The Indian government is likely to allow domestic mills and trading firms to import tax-free white sugar beyond March, the Economic Times newspaper reported on Monday, citing unnamed officials.
India, the world's biggest consumer of sugar, had allowed state firms to import up to 1 million tonnes of duty-free whites in April 2009 and later extended it to private traders. In November, this facility was allowed until March 2010.
The government is also considering allowing mills in Uttar Pradesh to refine imported raws into whites in other states, the paper said.
The northern state of Uttar Pradesh, the country's biggest cane producer, has banned processing of imported raws since November following agitations by farmers there who wanted better prices for their cane.
Domestic sugar prices have surged almost 20 percent since Jan. 1 as output dived 44 percent to 14.7 million tonnes in the year to September 2009.
Source : REUTERS