Decision on import duty on sugar in a week: Pawar

NEW DELHI: The government may take a decision on imposing import duty on sugar in the next seven days, Food and Agriculture Minister Sharad Pawar on Wednesday said.

"It is in the process. We may decide in a week or so," he said when asked about whether the government is considering import duty on sugar.

The industry have been demanding import duty on refined sugar as the prices of the sweetener have fallen in the domestic market by about 30 per cent in the last four months. Sugar prices, which were nearly Rs 50 a kg in mid-January, have declined to Rs 32-33 a kg now in the national capital.

At present, duty-free import of both white and raw sugar is allowed till December, 2010. India, the world's second largest producer but biggest consumer, has imported over six million tonnes of sugar since February 2009, when import was allowed to augment domestic supply and curb price rise.

Last month, Pawar had said the government would consider imposing import duty on sugar after assessing the production situation of the ongoing 2009-10 crop year (October-September) and outlook for the next crop year.

India's sugar production is expected to increase to 18.5 million tonnes in 2009-10 from 14.7 million tonnes in the previous crop year. Initial estimate was that the country would produce 16 million tonnes in the current crop year.

Asked when the government would announce support price of kharif crops as sowing has begun, Pawar said the minim support price (MSP) would be announced in the next 7-10 days.

He declined to share the proposed increase in MSP but said "it will be positive for farmers".

On monsoon, Pawar said rains have just started and lets see how is distributed across the country.

Asked about the proposed increase in rates at which the Centre buys levy sugar (meant for ration shops) from mills, he said the food ministry has send the proposal to the finance ministry in this regard.

The average price of levy sugar currently is Rs 13.22 per kg, while the central issue price of levy sugar is Rs 13.50 a kg.