Sugar exports capped, steel imports allowed

NEW DELHI: The Centre on Friday took a twin step of putting a virtual cap on sugar exports and allowed unrestricted steel imports to arrest their spiraling prices.

Worried over soaring prices, which has hit the common man hard, the centre is also exploring the ways of processing the imported raw sugar lying at the ports following up banning its process in the state.

The government gave 15 more months to sugar millers to meet their export obligations to plug exports under any manner in its bid rein in the prices which has more than doubled since last January and touched Rs 45 per kg in the retail markets.

The government has given the millers time to till March 31, 2011 to meet re-export obligations of around one million tonne sugar against raw sugar imported between September 2004 and April 2008 under the advance licence scheme. The obligation was to be met by December-end. The step is expected to augment the domestic supply.

The food ministry said it is exploring ways to process imported raw sugar that is lying at ports due to the ban imposed by up. "We are looking at what could be done to process the raw sugar lying at various ports," a ministry official said, adding it may relax import norms so that processing can take place in some other states. As a second option, the sugar millers can also discharge their obligation by paying customs duty for the sugar imported between september 2004 and april 2008, DGFT said.

On the steel front, which has also seen a 10-15% jump in prices, the centre allowed unrestricted imports of hot-rolled steel, mainly used by auto and consumer durables industries, which were planning price hike to offset rising raw material costs.