Traders at the Posta wholesale market in Calcutta said imported sugar is now feeding 90 per cent of consumption in the region, leaving only 10 per cent for domestic varieties.

Industry sources said quite a few economically weak sugar mills will have to close down if the imports continue unchecked. Kedarnath Ranasaria, executive director of Balrampur Chini Mills Ltd, said the entire industry will be in the red by next year if imports continue throughout the season.

"I don't understand why the Union government is allowing such unchecked import of sugar when the country is sufficient in sugar production," Ranasaria said.

He said the industry already has reserves of 55 lakh tonnes, and expects to produce 140 to 145 lakh tonnes in 1998-99. The total will be enough for nextyear's consumption.

When asked why the Indian sugar mills are not facing competition from imports, Ranasarai pointed out that the government procures 40 per cent of their production at below-cost prices for supply through the subsidised public distribution system. He said the industry has to make up the loss on this 40 per cent by charging higher prices for the sugar that it can sell in the open market. Apart from this, input costs and prices of sugarcane have also gone up sharply. The minimum price for sugarcane has been fixed at Rs 75 per quintal, and cane price accounts for 75 per cent of the production cost, according to him.

The average cost of one tonne of sugar is around Rs 13,000 after taking into account realisation from byproducts such as molasses, alcohol and bagasse, Ranasaria said.

He claimed that the Pakistan government is offering its industry a subsidy on sugar export, which is why they can offer their commodity at lower rates. In this backdrop, Indian industry has already urged theUnion government to impose an anti-dumping duty on imports from Pakistan.

According to sources at Calcutta port, during April to September this year, nearly 38,000 tonnes of sugar landed at the port against a mere six tonnes in the same period last year. A large quantity of imported sugar has also landed at Haldia Port.