Govt extends deadline for meeting sugar export obligation

The Cabinet Committee on Economic Affairs (CCEA) approved the extension of the period for fulfillment of export obligation of advance license holders who imported raw sugar between Sept. 21, 2004 and April 15, 2008. There was a shortfall in sugar production in 2004-05 sugar season (Oct-Sept). The Central Government, with a view to augment domestic stocks of sugar, allowed import of raw sugar on ‘ton-to-ton’ basis under Advance Authorization Scheme (then Advance License Scheme). This policy of ‘ton-to-ton’ remained in vogue from Sept. 21, 2004 and April 15, 2008. The export obligation against imported raw sugar under this relaxed policy was 20.75 lakh tons. The export obligation of 9.67 lakh tons is yet to be fulfilled.

In January 2009, the Government had decided to extend the period for discharge of pending export obligation till Dec. 31, 2009. In view of anticipated low production of sugar in the current sugar season, the Government has approved the following two options to Advance License Holders who are yet to fulfill their export obligation:-

a. Further extension of time up to March 31, 2011 for export without payment of composition fees

b. Pay customs duty as applicable during the relevant period, in which case they will be discharged fully from the export obligation for the quantity that they have not been able to export under the policy.

Advance authorization holders may exercise either of the two options mentioned above.