New Delhi, Nov 19: In a bid to protect the domestic sugar industry from cheap imports, government has brought imported sugar under the monthly release mechanism, wherein the centre fixes the quantity of sugar to be unloaded by domestic mills in a given month."With this measure sale of domestic sugar and that of imported sugar in the domestic free sale market are brought at par," an official release said here.The decision to introduce release mechanism for sale of imported sugar in domestic market has been taken under the Sugar Control Amendment Order (SCO), 1999.
Following complaints of large scale imports of cheap sugar from countries like Pakistan, China and Brazil, government had earlier this year amended the Sugar Control Order to enable the centre to subject imported sugar to the same control as applicable to domestically produced sugar.
While the domestic sugar producers had to compulsorily sell 40 per cent of the produce to government for distribution through the Public Distribution System (PDS), traders were free to sell the imported sugar until now.
Under the release mechanism, importers now are required to sell their stocks against monthly release orders issued by the Directorate of Sugar, Department of Sugar and Edible Oils in the Ministry of Consumer Affairs and Public Distribution, the release said.
Under the new guidelines, sugar importers will have to declare the stocks of imported sugar held by them to the Chief Director (Sugar), Directorate of Sugar under the Department of Sugar and Edible oils by Fifteenth of every month to facilitate issuance of release orders.
Though the amended SCO also provided for subjecting imported sugar to levy obligation of 40 per cent, the government has not exercised it.Domestic sugar producers, led by the Indian Sugar Mills Association (ISMA), had been pleading for a substantial hike in the import duty on sugar from the current level of 27.5 per cent and a countervailing duty of Rs 800 per tonne to provide a level playing field to the indigenous producers.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.