The Centre has allowed mills in Uttar Pradesh to sell raw sugar imported by them, but lying at various ports because of a ban, to mills in other states -- a decision that will help augment availability of the sweetener and curb its price.
About 8 lakh tonnes of imported raw sugar are lying at ports due to ban imposed by the Uttar Pradesh government in November last year on processing them in the state.
"In view of the difficulties being faced by importers of raw sugar to move imported stocks to Uttar Pradesh for refining, the government has decided to allow such sugar mills and refineries to make one time sale of such stocks to other mills/refineries," the Finance Ministry said in a circular.
The circular, dated February 10, has allowed the UP mills to pass on the reimbursement for additional customs duty to the other mills who intend to buy the imported stock.
The procedure would remain in force for the raw sugar imported till June 2010, the circular said, adding that the importers would be permitted to make a one-time sale of raw sugar latest by December 31, 2010.
Last month, the Cabinet Committee on Prices had allowed Uttar Pradesh millers to process imported raw sugar in other states.
However, that did not help as refineries in other states were asking for high processing charges.
Sugar prices have more than doubled since January 2009. In the national capital, sugar is selling for Rs 44 a kg in the retail market.
