Sugar millers are not in favour of imports for at least the next twenty four months, as they say there is enough sugar available domestically.
“Our estimation is that there will be an availability of 31 million tonnes of sugar during the 2016-17 sugar year, beginning in October. If the country consumes even the outer limit of 26 million tonnes, the sugar stock (carryover) on October 1, 2017 (beginning of the next sugar year) will be 5 million tonnes, which is a massive amount,” Tarun Sawhney, President, Indian Sugar Mills Association (ISMA), told reporters on the sidelines of a seminar on sugarcane pricing on Monday.
While India allows import of sugar, at present there is a prohibitive 40 per cent duty which, ISMA says, should not be tinkered with.
Sugar production in the on-going year 2015-16 is likely to be 24 million tonnes, about 3 million tonnes less than the previous year due to dry conditions in Maharashtra and Karnataka, according to ISMA estimates.
“We will start the new sugar year with an opening balance of 7 million tonnes to 7.5 million tonnes,” Sawhney said.
Sawhney pointed out that the Indian Meteorological Department (IMD) has predicted good monsoon, which could mean that all dams will be full, sub-soil moisture will be excellent, and water levels will be good.
“Even if there is 4-5 per cent variation in production numbers that we have estimated, we shall still have enough sugar,” Sawhney said.
At the seminar, ISMA pushed for a standard formula for cane pricing across the country, with no variations among States.
A Sugar Development Board, on the lines of the Tea Board or the Coffee Board, was proposed to be set up by Bharat Krishak Samaj Chairman Ajay Jakhar.
Jakhar said the government could apply a small tax on sugar products and the money could be used for the Sugar Development Board. “It is only through the setting up of such a Board that the yield, quantity and quality of sugar will improve,” he said.