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Friday, November 20, 1998

Fresh proposal for hiking import duty soon: Barnala 

PRESS TRUST OF INDIA  
New Delhi, Nov 19: The food ministry will soon send a fresh proposal to the cabinet for hiking import duty on sugar in an effort to tackle dumping of the commodity in the country, food and civil supplies minister Surjit Singh Barnala said on Thursday.

"We had earlier sent a proposal. We plan to send a new proposal soon," he told a press conference here.

Denying that government had deferred a decision on hiking the import duty on sugar, the minister said delay on part of government in hiking the duty had nothing to do with the elections to four states, including the capital territory.

"We will have to discourage imports to some extent as we have enough stocks and expect a good (sugarcane) crop," he said.

Asked to specify a date before which the duty would be hiked, Barnala said "it might be done soon".

The food ministry, however, would not specify the quantum of rise in import duty.

"We will leave it to the finance ministry to decide on the increase," he said.

However, something would have to bedone to reduce the level of imports, the minister said.

Asked why government had delayed in acting on the sugar industry's demand for raising import duty, Barnala said food ministry had to ensure that prices of the commodity did not rise during the festival season.

Sugar prices had a tendency to rise during festival season but the rising imports had kept the prices stable, he said.

The minister said cabinet would discuss on the amount of the import duty to be hiked.

"We (food ministry) can only suggest that the duty be increased," he said.

Referring to the imposition of five per cent basic customs duty and Rs 850 per tonne countervailing duty on sugar imports earlier this year, Barnala said it had not been able to "resist" dumping of sugar.

At least 16.5 lakh tonnes of sugar has been registered for imports since September 1997 and over 10.5 lakh tonnes have already arrived in the country.

Pointing out to the steep rise in onion prices, he said "I do not know why onion got caught in the middle.Prices of sugar, wheat and rice have been stable."

Asked when government would implement the high-powered Mahajan Commission's recommendation to decontrol the sugar industry, he said it was under study.

Under decontrol policy, government buys 40 per cent of sugar produced by a mill for public distribution system. The Mahajan panel had called for doing away with it in two years time.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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