India to stop wheat import, allow export of sugar

New Delhi, Nov 8: India will not allow the duty-free import of wheat from the end of current year, besides lifting the ban on the export of sugar in the next two weeks, in view of the bumper sugar production.

The import of 5.5 million tonnes of wheat was allowed to curb the rising prices and to maintain the buffer stock, Agriculture and Food Minister Sharad Pawar told the economic editors today.

''After December 31, private traders will not be allowed duty-free import of wheat. The government is seriously thinking of removing the ban on the export of sugar within the next fortnight,'' he added.

Sugar production is expected to touch 22.7 milion tonnes against last year's 19 million tonnes with a carry-over of 3 million tonnes, while the total annual domestic consumption was around 18 million tonnes.

In July, the government imposed a ban on the export of sugar to keep the soaring prices and inflation index in check, but the traders have been lobbying hard to lift the ban for realising good returns from the potential export of 2 million tonnes, with global sugar prices ruling high.

With the sugarcane crop getting damaged due to a dry spell last year, sugar mills had imported raw sugar with a commitment to export refined products under an advance licence scheme. They are yet to fulfil the export obligation to the tune of 800,000 tonnes.

Mr Pawar said wheat prices would come down as a record quantity of food grains will be produced next year.

Referring to the agrarian crisis that has driven hundreds of farmers to commit suicide, Mr Pawar said the flow of institutional credit was fixed as high as Rs 1,75,000 crore for 2006-07. By September-end, an amouint of Rs 94,345.54 crore, forming 53.91 per cent of the target, had already been disbursed to the farming households at a 7 per cent rate of interest, efective from Kharif 2006.

Other steps included reforming of agriculture produce markets by amending APMC Act by a majority of states, creating of scientific storage to the extent of 17.1 million tonnes and granting of rehabilitation package to farmers in 31 drought affected districts.

Besides this, Livestock Insurance sheme, initiated in 2004-05 has been strengthened with public-private participation.

UNI