"We are not seeking a ban on sugar imports. But we definitely need a level-playing field for the domestic sugar industry to survive," National Federation of Cooperative Sugar Factories managing director MS Marathe said.

"We have raised various issues concerning us to the government but we are yet to get any answer," Indian Sugar Mills Association (Isma), a body of private sugar mills, secretary general SL Jain said.

One way of providing level-playing field to the domestic sugar units would be by raising import duty on the commodity, Marathe and Jain said.

Though the government had imposed a five per cent duty on sugar imports, besides levying a countervailing duty of Rs 850 per tonne in July, the industry says it is inadequate.

Last week, Isma demanded that import duty on sugar beraised by another 20 per cent. "If Pakistan were to import Indian sugar, our exporters would have to pay 36 per cent customs duty," Marathe said.

Indian sugar industry is particularly worried that rising imports could lead to a glut in the domestic market at the beginning of the new season next month.

Industry experts have projected a 150 lakh tonnes production during the next season against the current season's output of 125 lakh tonnes.

Amidst expectations of a rise in production, sugar imports into India from Pakistan has increased sharply with at least six lakh tonnes being registered for imports from across the border in view of Islamabad's decision to cut price of the commodity considerably.

Price for Pakistan sugar has been reduced to $270-280 a tonne from 300 dollars earlier leading to the rise in imports.

Marathe said imports from Pakistan had also increased after Islamabad doubled export subsidies to 400 Pakistan Rupees a quintal.

Reports from Pakistan said 4.2 lakh tonnes had beenexported to India since January this year.

Rising imports had led to crash in domestic sugar pricesto Rs 1,250 a quintal from Rs 1,350 a quintal.

"The crash in prices, especially during festival season will have an adverse effect on the financial health of sugar mills," Marathe said.

Marathe said government had also allowed 8.5 lakh tonnes of sugar for open market sale against the usual 7.5 lakh tonnes to further compound the industry's problems.

"Moreover, our chances for export are very remote since global sugar prices are ruling very low," he said. Jain said the industry could also not seek anti-dumping proceedings since sugar did not come under the purview of such actions.

"We are wondering why India has committed to bind its import duties at a very low rate for sugar. European Union imposes 290 per cent import duty and the united states 175 per cent," he said.

Isma has almost given up its hopes to convince the government on imposing a higher import duty on sugar since its representationsduring the last couple of months had gone without any response. "There is total lack of application of mind by the government to the problems faced by the sugar industry," Jain claimed.