Apprehending that sugar price may go up during the festival season (Diwali) due to lower production of sugar and sugarcane, the government today said in the Lok Sabha that it has allowed companies to import raw sugar and process it here to increase availability.
"This year sugar as well as sugarcane production is less and that is why sugar prices are going up to Rs 25-26 a kg or even Rs 27 in the domestic market. Around Diwali it may go up even further," Agriculture Minister Sharad Pawar said during the Question Hour.
The way out was to increase the domestic availability either by importing sugar directly or importing raw sugar and processing it here.
"The government decided on second option so that capacity utilisation of the domestic industry will go up and it will also generate employment," the minister said adding imports directly from government to government has not been allowed.
To increase the availability of sugar in the country, the Centre has allowed sugar mills to import raw sugar under open general licence till August 1, 2009, besides permitting STC, MMTC and PEC to import up to 10 lakh tonnes of refined sugar till that date.
