Indian Sugar Mills Association (ISMA) said that
According to government estimates, which are more reliable, at the beginning of the current season, the sugar stock was 10 million tonnes. Still according to Smaiya, some degree of import will be needed in FY2009-2010.
Meanwhile, Indian government gave green signal to or state run trading firms to import 1 million tonnes of white sugar at zero duty within August this year which will be sold to the open market.
In Fy 2007-08, the production was 26.5 million tonnes and exported 5 million tonnes.
Currently, the Indian government is busy with its month long general election and eased imports of raw and refined sugar, imposed stock limits for traders and considered to ban “sugar futures.” On April 28, 2009, the federal government issued a statement where it revealed its plans to change a rule that would require sugar mill owners to sell 10% of their processed sugar at low rates in the domestic market. Indian sugar mill owners import raw sugar from abroad and then process them and export them. Mr. Somaiya said that government is changing its policies rapidly and it would take some time for them to adjust to the changes. Siddharth Sriram, chairman, Mawana Sugars Ltd. said that he was very happy with government’s decision to levy “zero duty” on raw sugar imports because it eats away profitability.
(This entry was originally published in April 2009 and it based on the context on that time.)