Sugar imports may touch 12L tonnes in 2008-09

NEW DELHI: India's raw sugar imports may reach 1.2 million tonnes in 2008-09 sugar season even as many mills have closed down due to non-availability of sugarcane, an industry official said on Wednesday.

"Raw sugar import on 'ton-to-ton' scheme may touch a maximum of 12 lakh tonnes this season," Maharashtra State Cooperative Sugar Factories Federation Managing Director Prakash Naiknavare said.

Under ton-to-ton scheme, millers are allowed to import duty-free raw sugar and sell the sweetener in the domestic market with the obligation to export similar quantity of refined sugar within a stipulated period.

He said the mills have so far contracted about six lakh tonnes while about 40,000 tonnes have already landed in ports. The government expects raw sugar import under zero-duty to touch 20 lakh tonnes.

Naiknavare also said the cooperative mills in Maharashtra would not import more than 50,000 tonnes as 40 per cent of them are already closed and the remaining 60 per cent would be closed by March-end.

When pointed out that the notification has made the new import policy effective from February 17, Naiknavare said the quantity arrived so far would be treated under grain-to-grain, wherein the imported sugar cannot be sold in the local market, which also attracts zero duty.