They feel that the government is delaying the increase in import duty mainly to avoid possible increase in the retail price on account of that move. Reports of imposition of import duty and countervailing duty had previously pushed up the prices. The BJP government, which is already facing problems in the price front with regard to essential items, does not want to precipitate the matter further, especially prior to diwali, they added. As it is diwali is not going to be all that sweet for the domestic sugar manufacturers.

Relentless quantum of imported sugar that is finding its way from neighbouring Pakistan has made life bitterfor them. Pakistan, which is having a bumper sugar production, is subsidising its exports in a bid to rake in valuable foreign exchange at a time when the country is in deep trouble on that front in view of the post-nuclear blast economic sanctions. Informed sources say that the quantum of subsidy is as high as Rs 4 per kg of sugar exported.

Adding to their woes is the higher release in the free sale quota to the extent of 50,000 tonnes on account of festivals. Though this is a yearly ritual, the combined effect of both imports and higher free sale quota is likely to keep the prices down. In south, the ex-factory prices are rangebound at Rs 1250 to Rs 1330 levels. Though the usual surge in demand prior to Diwali is yet to manifest itself, manufacturers are worried that supply in the system is such that any amount of increase in demand would not result in higher realisation. The retail price of sugar is anywhere between Rs 15 and Rs 16.

Delhi: There has been no appreciable increase in the price of sugar inthe open market in the festive Diwali season due to huge arrivals of imported sugar from neighbouring Pakistan, alleged M S Marathe, managing director, National Federation of Cooperative Sugar Factories.The open market price of sugar in Delhi is Rs 16 per kg, whilst the factory price is Rs 13.50. This shows that there is not much difference between the factory price and the price in open market.

Marathe alleged that already 10 lakh tonne of sugar has been imported from Pakistan and another 16 lakh tonne of sugar has been registered for import from Pakistan with APEDA. The Pakistan government has been subsidising sugar export to the extent of Rs 4 per kg and extending three months credit facilities to exporters. This import of sugar is adversely affecting the domestic sugar industry.Marathe called upon the government to enhance the basic duty on sugar imports from the existing level of 5 per cent and also raise the countervailing duty on imported sugar.