Regarding the requirement of sugar to import, I understand that 24 lakh tonnes of raw sugar has already been imported and that contracts are almost finalised for another 26 lakh tonnes of raw sugar,” agriculture minister Sharad Pawar on Thursday told at the Annual General Meeting of the National Federation of Co-operative Sugar Factories.
India, also the world’s largest sugar consumer, is importing raw sugar as production is estimated to decline at 150 lakh tonnes in the current season from 264 lakh tonnes in 2007-08 season (October to September). Meanwhile, sugar demand is estimated to be 233-240 lakh tonnes in the country.
“Today we are faced with a situation of low production, low stock, very high prices and insufficient availability of domestic sugar,” Mr Pawar said.
However, the steps taken by the government would help in increasing the domestic availability of sugar not only by imports but also by ensuring that surplus stock held by bulk consumers get released in the market.
Recently, the government extended the period of duty-free import of raw sugar without export obligation till December 2010 to help mills contract on a long-term basis so that domestic demand is met.
Mr Pawar further said due to fall in availability of sugarcane and sugar, the country is reeling under the pressure of high sugar prices. At present, sugar prices in the retail market are ruling at over Rs 35 per kg.
Updating current crop situation, Mr Pawar said most of the sugarcane producing states have received good rainfall as well as sunshine during August-September. “We therefore expect this will help in not only improving the yield of sugarcane per hectare but should also improve sucrose formation in the sugarcane, thereby improving the overall production of sugarcane and sugar,” he said.
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