The Hindu Business Line : Ministry seeks proof of export orders to issue new licences

IN an apparent move to put the brakes on duty-free import of raw sugar against advance licences (AL), the Commerce Ministry is now reportedly asking mills to furnish proof of confirmed export orders prior to issue of new licences.

``There is no official notice from the Directorate-General of Foreign Trade (DGFT) in this regard.

``But they are certainly going slow on issuing fresh ALs and are looking at mill-wise data on imports,'' industry sources said.

During the 2003-04 season (October-September), duty-free raw sugar imports against AL totalled 5.53 lakh tonnes (lt), while in the current season, an additional 13.21 lt have already arrived so far.

Meanwhile, the DGFT is yet to formally notify the 36-months period for mills to fulfil their export obligation against raw sugar imports made under the AL scheme. This is almost three months after the Union Food and Agriculture Minister, Mr Sharad Pawar, announced the decision to extend the export obligation period from 24 months to 36 months at a press conference on January 6, as part of the Government's efforts to contain spiralling domestic sugar prices.

``As of now, all the licences being issued currently carry an export obligation period of 24 months,'' the sources added.

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