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Our Bureau

New Delhi, March 12 Imported sugar will not be covered under the Centre’s order allowing State Governments and Union Territories (UT) to impose stock holding and turnover limits on the commodity.

The stock holding and turnover limits will not be applicable to sugar importers under Open General Licence (OGL), according to the order issued under the Essential Commodities Act, 1955 on Thursday.

A Food Ministry official said duty-free raw sugar imported against advance licences is not covered under the order “because this sugar is basically used for further processing by mills, which are anyway not subjected to any stock holding limits”.

The limits apply only to recognised dealers defined by clause 2(c) of the Sugar Control Order, 1966 and are in the business of purchasing, selling or distributing sugar. As regards white sugar or even raws imported under OGL, these currently attract 60 per cent basic Customs duty, making them unviable.

But what if, going by market rumours, the import duty on white sugar is brought down to zero? “If imported sugar is going to be permitted duty-free and not attract any stock holding or turnover limits applicable on domestically manufactured sugar, we will definitely fight it in the courts. Our demand is that the imported sugar should even comply to the 10 per cent levy requirement and monthly release mechanism, so that there is no discrimination,” a Chennai-based miller said.

According to sources, the Food Ministry’s proposal — currently pending for the Election Commission’s clearance —is to restrict duty-free imports of white sugar to only the State Trading Corporation and MMTC Ltd. The two parastatals are to be allowed to import 10 lakh tonnes each on Government account, it is learnt.

The Centre’s latest order, in fact, exempts “the holding or keeping of sugar stocks (i) on Government account; or (ii) by the recognised dealers nominated by a State Government or an officer authorised by it to hold stock for distribution through fair price shops; or (iii) by the Food Corporation of India” from the proposed stock or turnover limits.

The stock holding limits have been generally pegged at 200 tonnes, while being set at 1,000 tonnes for recognised dealers in Kolkata and extended area who imported sugar from outside West Bengal. The dealers will have to also turn over their stock within 30 days from the date of receipt.

“The State Governments and UT administrations have been authorised to fix stock holding and turnover limits higher than the limits fixed by the Union Government in their respective States/UTs”, the order has stated.

The order will come into effect 15 days after its publication in the Official Gazette for a period of four months. “We issued the order today and it will be published in 2-3 days time. So, it will come into force from around April 1, which will also give sufficient time to the States to issue/renew necessary licences to recognised sugar dealers,” the official explained.

The decision to impose stock holding and turnover limits was approved by the Cabinet Committee on Economic Affairs on February 23.

More Stories on : Sugar | Exports & Imports

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