"Sugar production in the current season 2012-13 has been estimated to be sufficient to meet the estimated domestic consumption requirement," food minister KV Thomas said in a written reply to the Lok Sabha. In 2012-13, sugar production and consumption is likely to be 23 million tonnes, he said.
"As such, large surplus production of sugar in this season is not expected at present," the minister noted. In 2011, the country had produced 26.06 million tonnes of sugar, while domestic requirement was 22.3 million tonnes. On export and import policy on sugar, Thomas said, "Changes in export policy would be made, if considered appropriate, depending upon the production, availability and international as well as domestic prices of sugar." In May, sugar exports were kept under the open general licence (OGL) only till September.
As regards revision of import duty, the minister said that no decision has been taken by the government so far. However, the food ministry has recommended a hike in import duty on white sugar to 20 percent in order to check flooding of the sweetener in the domestic market.
At present, the import duty on white sugar as well as raw sugar is at 10 percent respectively. To a separate query on hiking price of sugar sold in ration shops, Thomas said, "The price of sugar meant for sale in PDS is Rs 13.50 per kg since March 2002. No decision to increase its price has been taken by the government."
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