ISMA bats for lower duties for Indian sugar in Sri Lanka, Bangladesh

NEW DELHI: Domestic sugar production is set to rise to record levels in the next marketing year starting October 2018, according to Indian Sugar Mills Association (Isma), leaving enough surplus sugar that can be exported to the neighbouring countries.

However, ISMA feels India is at an unfavourable position as Sri Lanka and Bangladesh, two major importing nations, impose high import duty on sugar at $100 and $150 per tonne, respectively. The two countries import 25-30 lakh tonnes of the sweetener annually.

Isma has requested the government to seek preferential import duty from Bangladesh and Sri Lanka. “Several countries offer preferential import duty to neighbouring countries under regional cooperation, like Indonesia offers to Thailand and Australia… Efforts should be started from now itself, so that these markets are available for Indian sugar exporters at concessional import duties from the beginning of next year, when we would like to export sugar,” said Sarita Reddy, president of Isma, at the body’s 83rd annual general meeting here on Thursday.

In the ongoing sugar season, which runs from October to September, Isma expects 251 lakh tonnes of sugar production which would around the level of sugar consumption of the country. Large sugar producing states like Maharashtra and Uttar Pradesh may see positive rise in production in the current season, whereas production will be lower in drought-hit Tamil Nadu.

Sugar production in India has remained stagnant in the past 6-7 years. Experts say institutional reforms are needed in the way cane farming is practised and more emphasis should be given on research and development work. Isma has also urged the government to impose uniform sugarcane pricing policy - one nation one price similar to GST. At present, prices for sugar and its by-products vary from one state to other.

On the ethanol blending programme, the industrial body expects the tender quantity for ethanol to increase in the next bidding, which is likely to take place in February 2018. Isma director-general Abinash Verma said, “Last year, we offered 155 crore litres of ethanol but the oil companies finalised only 113 crore litres. Supply and demand for ethanol is expected to increase as more distilleries are participating in the next bidding.”