Sugar industry split over raw sugar import norms

The Indian Sugar Mills Association (ISMA) has opposed any relaxations in the existing advance license (AL) scheme allowing duty-free imports of raw sugar linked to white sugar export obligation on a ‘grain-to-grain’ basis.
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Dec 12, 2008, 08.44 AM | Source: Business Line

Sugar industry split over raw sugar import norms

The Indian Sugar Mills Association (ISMA) has opposed any relaxations in the existing advance license (AL) scheme allowing duty-free imports of raw sugar linked to white sugar export obligation on a ‘grain-to-grain’ basis.

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Sugar industry split over raw sugar import norms

The Indian Sugar Mills Association (ISMA) has opposed any relaxations in the existing advance license (AL) scheme allowing duty-free imports of raw sugar linked to white sugar export obligation on a ‘grain-to-grain’ basis.

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New Delhi, Dec. 11

The Indian Sugar Mills Association (ISMA) has opposed any relaxations in the existing advance license (AL) scheme allowing duty-free imports of raw sugar linked to white sugar export obligation on a ‘grain-to-grain’ basis.

‘Actual user’

Currently, the AL scheme permits mills to import raw sugar at nil duty, subject to their meeting the ‘actual user’ or ‘grain-to-grain’ condition. The white sugar for re-export has to be processed from the same raw sugar imported duty-free against AL/Advance Authorisation (AA).

The export obligation – one tonne of white sugar for every 1.05 tonnes of raw sugar imported – is to be fulfilled within 24 months of the date of issue of the AL/AA. A section of the industry is seeking a relaxation in the ‘actual user’ condition to enable them to first imports raws at zero duty and sell the processed white sugar in the domestic market. The export obligation can be discharged separately on a “tonne-to-tonne” rather than on an actual ‘grain-to-grain’ basis.

“We oppose any relaxation as the existing condition already provides for raw sugar imports directly by mills in a fair manner. Allowing tonne-to-tonne would mean anyone can import raws anywhere and then export whites from elsewhere. It will only benefit traders and not the industry”, said Mr S.L. Jain, Director-General of ISMA.

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