INDIA may not allow import of refined sugar at zero duty before the general elections in April and May, said Union commerce secretary G K Pillai. The issue was not taken up by the Union Cabinet in its last meeting on Monday.
"The issue is before the Cabinet. It was not taken up in the last meeting. I don't think any thing will happen before (the) elections," Mr Pillai told reporters at a function of the Indo-American Chamber of Commerce on Saturday. Refined sugar attracts an import duty of 60%.
The government needs to take the approval of the Election Commission before announcing any such measure even after the Cabinet decides on the issue. The government had recently allowed sugar mills to import raw sugar at zero duty till September this year for sale in the domestic market. These imports would be under advance licence scheme and on 'tonne-to-tonne' basis, which means that mills would have to export the same quantity later.
Sugar prices in the domestic market have risen by up to 30% since October last year as production is estimated to fall to 160 lakh tonnes in 2008-09 season (October-September) from 264 lakh tonnes in the previous year. The government was expected to bring down import duties on refined sugar to zero as it would not want prices to go up during the general elections.
"The issue is before the Cabinet. It was not taken up in the last meeting. I don't think any thing will happen before (the) elections," Mr Pillai told reporters at a function of the Indo-American Chamber of Commerce on Saturday. Refined sugar attracts an import duty of 60%.
The government needs to take the approval of the Election Commission before announcing any such measure even after the Cabinet decides on the issue. The government had recently allowed sugar mills to import raw sugar at zero duty till September this year for sale in the domestic market. These imports would be under advance licence scheme and on 'tonne-to-tonne' basis, which means that mills would have to export the same quantity later.
Sugar prices in the domestic market have risen by up to 30% since October last year as production is estimated to fall to 160 lakh tonnes in 2008-09 season (October-September) from 264 lakh tonnes in the previous year. The government was expected to bring down import duties on refined sugar to zero as it would not want prices to go up during the general elections.
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