The government today allowed duty free import of refined sugar up to December 31 this year in the wake of its rising prices. 5.4 million tonnes of raw sugar will also be imported to bridge the gap between the demand and supply. The Cabinet Committee on Prices (CCP) also decided to permit UP mills to process imported raw sugar outside the state due to restrictions there. Briefing reporters after the meeting, the food and agriculture Minister Mr Sharad Pawar said that Mayawati government does not allow the mills to process the imported raw sugar in the state despite repeated requests from the centre. The Food Minister said several state governments have been advised to remove VAT and other taxes to bring down the prices of sugar. Mr. Pawar said, discussions are on with sugar mill owners to bring down the prices.The Minister expressed the hope that with these measures in place the prices of sugar will come down in a week's time. He said two-three million tonnes of wheat would be released in the open market in the next two months to check prices. The sugar prices are inching near 50 rupees a kilogram in the retail market.Mr Pawar announced that the Prime Minister Dr Manmohan Singh will review the situation with the Chief Ministers later this month.The meeting is expected to take place on 27tt to prepare a roadmap for dealing with the price situation across the country. Seeking cooperation from the state governments, Mr Pawar sought more active role from the state governments in containing the rising prices and called upon them to take effective de-hoarding measures. Mr Pawar said up to 5 lakh tonnes of wheat and two lakh tonnes of rice will also be distributed through NAFED and other cooperative societies so that its benefits reach to the customers.Referring to other measures taken to curtail price rise, Mr. Pawar said that the scheme of subsidised distribution of edible oil will continue upto end of October and all public sector trading companies have been asked to intensify import of pulses. Dispelling doubts about the availability of food grains, Mr. Sharad Pawar asserted that the government has surplus 74 lakh tonnes of wheat and 43 lakh tonnes of rice and appealed the state governments to take the amount of rice and wheat allotted to them from their quota. He said, 20 states have not taken this quota and those who have taken are too little.
News On AIR | January 13, 2010 1:57 PM
Govt. allows duty-free import of sugar, prices likely to fall soon