Nafed not to import duty-free white sugar

NEW DELHI: The Centre has decided not to allow co-operative major Nafed to import white sugar, restricting the job of shipping in the product to only three public-sector trading firms PEC, STC and MMTC. It is learnt that the committee of secretaries (CoS), in its meeting held on May 4, has decided to leave Nafed out of the task of importing duty-free white sugar as it felt that the co-operative will not be in a position to do the job.

The reason for keeping out the co-operative is that it did not bring in any quantity since the government decided to allow PEC, STC, MMTC and Nafed to import up to 10 lakh tonnes of white sugar at zero duty, sources said. They pointed out that three PSUs imported only 50,000 tonnes of sugar since April 9, when the Cabinet approved the duty-free import of refined sugar.

The four trading firms were asked to import up to 2.5 lakh tonnes of sugar each. Now, Nafed import quota will be equally distributed among the three PSUs, sources said. The government believes that the three PSUs will not be able to import more than 200,000 tonnes of the sweetener by August 1.

The commerce ministry, has, therefore suggested that private traders should be allowed to import the remaining 800,000 lakh tonnes of sugar. As part of the measures to augment the domestic availability of sugar and curtail further price rise, the government has taken other measures as well. In February, the Centre had permitted duty-free import of raw sugar till September for sale in the domestic market, provided mills export the same quantity
later.

Last month, the government allowed duty-free import of raw sugar till August 1, without any export obligations.