The Hindu : New Delhi News : `No need to import white sugar'

Online edition of India's National Newspaper
Saturday, Dec 25, 2004

New Delhi

New Delhi

`No need to import white sugar'

By Gargi Parsai

NEW DELHI, DEC. 24. The Government said on Thursday that there was no need to import white sugar in the face of an expected decline in production this year due to drought. However, it is expected that up to 15 lakh tonnes of raw sugar would be imported. The industry has already imported or contracted for 8.01 tonnes of raw sugar this year. Raw sugar can be converted into white sugar and has to be exported within 24 months.

As against 140 lakh tonnes last year, sugar output is likely to be around 120 lakh tonnes this year. With a carryover stock of about 85 lakh tonnes, the country would be able to tide over the crisis if any. Next year the production is expected to be good according to industry sources.

Speaking to mediapersons after addressing the 70th Annual General Meeting of the Indian Sugar Mills Association, the Union Food and Agriculture Minister, Sharad Pawar, said the Cabinet had given permission for import of raw sugar. ``Raw sugar is not only cheaper in the international market but also keeps mills occupied and gives employment to people.'' He said if need be, this sugar could be utilised for domestic consumption, although he categorically ruled out any ``shortages''.

Mr. Pawar, as well as the Finance Minister, P. Chidambaram, who also attended the AGM, said there was no need for an amendment notification governing import and export under the Advance Licensing Scheme for raw sugar import. The Cabinet had already cleared the proposal.

He urged the industry to strive for higher productivity at lower cost, achieve ``vertical growth'' by diversification and to give the best price to farmers. He said the converted sugar could be exported tonne for tonne instead of grain for grain. (Normally there is a loss of 0.5 per cent in conversion from raw to white sugar.)

Mr. Pawar said sugarcane arrears had been reduced for 2003-04 from Rs. 2568.79 crore to Rs. 580.81 crore as on September 9, 2004. The Tuteja Committee Report on Re-vitalisation of the Sugar Industry was being considered by the Government. A decision would be taken on it in another month. The outgoing ISMA president, Vivek M. Pittie, sought a minimum support price for sugarcane, as for other commodities. He also wanted it to be mandatory for oil companies to buy ethanol from the sugar mills to be used as their product-mix for which the industry had invested over Rs. 600 crore in upgradation of their units.

The president-elect, Rajshree Pathy, hoped that the industry would come out of its present crisis and share its benefits with farmers and other stakeholders. She said the problems of the industry differed from State to State.

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