India to import 50 lakh tonnes of sugar to meet shortfall

11 Sep 2009

India the world's second-biggest sugar producer after Brazil contracted the import of 50 lakh tonnes (LT) of raw sugar in the current year to bridge the demand supply gap for the commodity in the country and to curb prices.

Agriculture minister, Sharad Pawar said at the National Federation of Cooperative Sugar Factories' annual general meeting on Thursday that 24 lakh tonnes of raw sugar had been imported and contracts are being finalised for the import of another 26 lakh tonnes.

India is also the world's largest consumer of sugar and is importing raw sugar on estimates of a fall in production of the sweetener to 150 lakh tonnes in the current season. The indigenous production during 2007-08 season (October to September ) was 264 lakh tonnes. Sugar demand is estimated at 233-240 lakh tonnes in the country.

He added that the country faced a situation of low production, low stock, very high prices and insufficient availability of domestic sugar. He added that the steps being taken by the government would help in increasing the availability of the sweetener not only through imports but also by way of ensuring release to the market of surplus stock held by bulk consumers.