With India's domestic production in the current year estimated to overshoot demand by nearly 10 lakh tonnes, flooding of the market with the fresh batch of imports will worsen the situation for the already pressurised sugar manufacturers. The Indian Sugar Manufacturers Association (ISMA) feels that if the domestic industry is to be saved, an immediate implementation of the moves to curb imports announced by the food secretary is called for. It had been recently declared by the food secretary that moves would be made to create a level-playing field between the foreign and domestic sugar manufacturers. According to the announcement made, foreign sellers would also have to sell a part of the imported sugar to the government at administered prices, like their domestic counterparts. It was also said that just like domestic sugar, imported sugar would also be placed under release control. Under the release control system the government gives permission to sell sugar by way of release orders. A manufacturer cannotsell sugar beyond the quantity that has been mentioned in the release order.

ISMA president SL Jain told The Financial Express that it has been nearly three weeks since announcements were made regarding curbing of imports but no step has yet been taken. "It does not take more than a day to implement such decisions. But, due to lack of political will, the orders have not been acted upon." Jain said that sugar prices have been dipping for the last few months. "By the government's own admission, sugar is the only commodity where prices have not risen for a long time." Given the situation, the plight of the domestic manufacturers would be beyond repair if imports continue to flow into the country, he said.

As many as 50,000 farmers have not yet been paid for the sugarcane output, said Jain. "The government expresses concern over the farmers plight but hesitates to address the broader issue which has led to such a situation." Jain fears that if the farmers do not get their money they will stop producing sugarcane from the next season.

Of the 2.5 lakh tonnes coming into the country, one lakh tonne is being imported from Thailand and Brazil each and the remaining 50,000 tonnes from Pakistan. "The matter of the pending decisions has assumed greater significance as there are only a few days left before the consignments reach the country."

Now with the dismissal of the ruling government, things have become worse for the manufacturing community. Jain said that he failed to understand why the government was unwilling to increase the import duty fixed at a low level of 27 per cent. "If the government had something in mind it should have adopted an open policy and told us why it took such a stand. An interactive government would make things easier for us."

The sugar industry has become a pawn in the hands of players of international political games, said Jain. "The authorities have a lot of explaining to do to the industry."