Clarification on Import of
Sugar from Pakistan
[MoC&I
Press Release dated 16 May 2018]
It has been observed that there have been
some misinformed news reports appearing in the media about import of sugar from
Pakistan.
Import of Sugar from Pakistan
It is clarified that in FY 2018-19 (Till
14.5.2018), import of sugar from Pakistan has been just 1908 MT for a value
of USD 0.657 million. In 2017-18, there was an import of 13,110 MT for a
value of USD 4.68 million.
We must see this import in the overall context
that total annual sugar production of India is about 31.90 million MT in
Sugar season 2017-18. Further, India exported
1.75 million MT in 2017-18. During April-May 2018, the total export of sugar
has been 240,093 MT. Thus import
from Pakistan has been very miniscule as compared to total production
in the country and exports from India. Further, it has been reported that Pakistan
Government has provided cash freight subsidy of Rs 10.7
per kg on sugar.
Import Policy of Sugar
At present import of sugar is free with
a customs duty of 100%. There is no Pakistan specific restriction for any item for
imports to India.
India is under WTO obligation of MFN treatment
(equal and non-discriminatory treatment to all countries) for all WTO member countries
including Pakistan.
Imports
Value-wise, in the year 2016-17, total import
of sugar was USD 1,019 million and it declined to USD 934 million in 2017-18. During
April-May 2018, the total import of sugar has been USD 37.75 million.
Quantity-wise, in the year 2016-17, total
import of sugar was 2.14 million MT and it marginally increased to 2.40 million
MT in 2017-18. During April-May 2018, the total import of sugar has been 116,512
MT.
Sugar is mostly
imported from Brazil.
Sugar if imported under Advanced Authorisation is meant for export only and not for domestic
sale.
For making customs duty payment, importers
can use MEIS (merchandise Exports from India) scrips. These scrips are either received
from Government against exports as exports incentives. Alternatively, importers
can purchase them from other exporters as
these scrips are free tradable.
Quality checks on
import of sugar from Pakistan
We have requested Customs to carry out rigorous
inspections as well as sampling for quality testing in FSSAI labs of sugar imports
particularly at Mumbai and Wagha.
Exports
Quantity-wise, in the year 2016-17, total
export of sugar was 2.54 million MT and it decreased to 1.75 million MT in 2017-18.
During April-May 2018, the total export of sugar has been 240,093 MT.
Value-wise, in the year 2016-17, total export
of sugar was USD 1,285 million and it declined to USD 805 million in 2017-18. During
April-May 2018, the total export of sugar has been USD 91 million.
Statement of country wise imports and exports
of sugar during last two years and 2018-19 (Till 14May) is annexed.