NEW DELHI: The Union government may re-impose duties on import of sugar in the wake of increased production and decline in prices, Food and Agriculture Minister, Mr Sharad Pawar indicated on Friday.

He said in the Rajya Sabha that the government had eliminated duty on sugar import which was also free from levy obligation when it found that there was a demand-supply mismatch.
“But that was the situation last year. The position is altogether different... There is more production and prices are going down. We have to protect sugarcane farmers,” Mr Pawar said.
Government will have to take a decision “at an appropriate time to keep a level playing field for both of them (consumer and farmer),” he added while answering questions in the Upper House.
The minister had said on April 26 outside the House that “we will review sugar production and consider imposing duties on sugar import after Parliament session”.
The sugar import had attracted tax up to 60 per cent till last year. But when the government found in April 2009 that there was a major mismatch between the demand and supply, it eliminated the import duty. Prices touched Rs 50 per kg thereafter.
Against the domestic requirement of 220-230 lakh tonnes, the production fell to 150 lakh tonnes in 2009. However, the situation has changed this year (September 2009-October 2010) and prices have fallen in the retail to Rs 35 per kg. Production has also increased.
“According to figures available with me, production is about 180 lakh tonnes and this year the yield per hectare is also good. With increase in plantation, the production would be in excess next year (September 2010-October 2011),” he said.
The Minister said the trend was definitely changing.