Clarification on Import of Sugar from Pakistan

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.