Govt rules out sugar imports in 2005-06

Union agriculture minister Sharad Pawar on Friday ruled out the possibility of importing sugar in 2005-06 season, saying production during the season, which started October 1, would be enough to meet the domestic demand.

"No sugar imports will be needed this year as production is expected to be more than the requirement," Pawar said on the sidelines of Rural Marketing Summit, organised by Federation of Indian Chambers of Commerce and Industry (Ficci).

Sugar output this year is estimated at 18-18.5 million tonne. There are also 4-4.5 million tonne of carry over stocks.

The situation is comfortable, Pawar said.

Besides, sugar imports will not be economical as international prices are ruling very high, Pawar said. Last year, the country had to import about 2 million tonne of raw sugar to meet the domestic requirement.India had produced around 13 million tonne of sugar in 2004-05 (October-September).

The country consumes around 18-19 million tonnes of the sweetener annually. Referring to wheat, Pawar reiterated there is no need for wheat imports this year and the buffer stocks are comfortable.

He said earlier the country maintained a buffer stock of three years, but now it has a buffer stock of only one year. However, there is no cause of concern as the situation is comfortable.

According to official estimates, the government has stocks of around 10 million tonnes of wheat as of October 1, down from 14.2 million tonne last year.