The government will wait for 10-15 days before taking a call on imposing import duty on sugar, although the domestic industry kept up pressure for the levy to arrest a crash in prices.
"No decision on imposing import duty on sugar immediately because global prices are on higher side. I would not like to rush it. And the decision may be taken in 10-15 days," Food and Agriculture Minister Sharad Pawar told reporters today.
Industry has been demanding import duty on refined sugar to check sliding domestic prices. Duty free import of white and raw sugar is allowed till December this year. Sugar prices, which were nearly Rs 50/kg in mid-January, have declined to Rs 32-33 a kg now in the national capital.
The country imported over 6 million tonnes of sugar since February 2009, when import was allowed to augment domestic supply and curb price rise, to meet the annual domestic demand of 23 million tonnes.
Globally, refined sugar is quoting at $500 a tonne now compared to $485 per tonne in early June.
The minister, who joined office today after undergoing a surgery last week, also said that the eGoM would consider the proposal to reduce the percentage of levy sugar to 16 per cent from the existing 20 per cent in its next meet.
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Sugar mills have to contribute 20 per cent of the total production in 2009-10 (October-September) to the government for supply through ration shops, which is technically called levy sugar.
The Food Ministry plans to reduce the levy percentage as the domestic sugar output is estimated to reach 18.7 million tonnes in the current season as against the earlier estimate of 16 million tonnes.
The government requires 2.7 million tonnes for ration shops, while at 20 per cent levy quota, it would end up buying 3.7 million tonnes.
India, the world's second-largest producer but biggest consumer, produced 14.7 million tonnes in 2008-09.
Asked about revision of price that it pays to mills for purchasing sugar (levy sugar), Pawar said it would be fixed between Rs 17-18 per kg effective from October 2009. Currently, the average price is Rs 13.22 a kg and is supplied through ration shops at Rs 13.5 per kg.