India will allow the import of refined sugar at zero duty beyond November this year to cool prices, as slump in output in the world's largest consuming nation has doubled the rates to Rs 36 a kg in just a year.
"We will extend it (the import of refined sugar at zero duty from its deadline of November-end 2009)," Food and Agriculture Minister Sharad Pawar told reporters here today.
"I am not sure (about the period of extension). But probably till May or June 2010," he added.
Pawar indicated that sugar prices may fall towards the end of the festival season (September-December) once the imported raw sweetener gets processed and reaches the market.
"Mills have entered into agreement to import over 4 million tonnes (MT) of raw sugar. Processing has started and when it goes to the market after getting ready, it will have its impact," the minister said.
Earlier, co-operative sugar factories had apprehended that sugar prices might touch Rs 40 a kg after October, when the new sugar season starts, on more expensive imports.
Earlier this year, India allowed duty-free import of both raw and refined sugar after production plummeted to 15 MT in 2008-09 from 26.4 MT a year earlier.
Separately, the minister said the Centre is giving 'serious thoughts" to demands of certain rice-producing states to provide bonus on paddy over and above the current support price of Rs 950 a quintal for the common variety.
"Some states, where paddy is produced, have written to us, suggesting that some bonus needs to be given (on the MSP of paddy)....That's why we are giving serious thoughts to it," Pawar said.
Asked if the country needs to import rice this year after drought in about the half the country adversely affected the paddy crop, the minister said India has enough stocks due to record production last year.
However, all the efforts should be directed to compensate against the losses in the coming Rabi season.
