Sugar export rider to go

The government is likely to lift the pre-import condition on sugar exports to augment sugar stocks in the country.

Senior government officials told Business Standard that the government was lifting the condition on the basis of recommendations made by the food ministry and the sugar industry.

The move comes close on the heels of the government's decision to allow duty-free imports of raw sugar under the advance licence scheme, with mills being given the flexibility to sell processed sugar from the imported raw sugar in the domestic market.

According to the present pre-import stipulation, the ratio of import against exports is 1.05 per cent to 1 per cent. This essentially means that for every 1.05 per cent of import of raw sugar, a sugar mill has to undertake an export of 1 per cent.

"The condition had been imposed two years ago when sugar was surplus. Now, sugar stocks are less. Therefore, this condition should be removed," an official said.