Government may hike sugar buffer
Mumbai: The Union Government is considering a proposal to increase sugar buffer stocks from the present level of 20 lakh tonnes to 50 lakh tonnes, according to the Union Agriculture Minister, Sharad Pawar.

The industry has been asking for a hike in the sugar buffer stocks after the record sugar production during 2006-07 (October-September) estimated at over 250 lakh tonnes against 195 lakh tonnes the previous year. Sugar prices have been ruling at lows of Rs1300-1400 a quintal due to the huge inventory build up.

Experts said if after the Government increases buffer stocks, actual stocks will continue to remain with the mills but the government will pick up the carrying cost making it burdensome for the government. Back to News Review index page  

Government to import edible oil through agencies to reduce prices
New Delhi: The government is considering allowing cheaper imports or getting state-owned canalising agencies to import palm, soy, rapeseed and mustard oil through the year as part of its extended inflation-management strategy.

Under the second plan, the State Trading Corporation, MMTC, and Nafed may be asked to import 1 million tonnes of these oils from Indonesia, Malaysia, Argentina and Brazil and process them as marketable pouches.

The companies will be compensated for losses up to a 10 per cent limit, which the department of consumer affairs suggests would translate into a subsidy of Rs500 crore.

Annual edible oil imports stood at around 1.7 million metric tonnes in November 2006-April 2007, the first six months of the latest "oil year" (November to October).
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India rejects probe on wine duty by WTO
New Delhi: India has rejected a World Trade Organisation (WTO) probe against additional Customs duty imposed on imported liquor. The complaint, filed by the United States, had requested the formation of a panel for an inquiry into the duties.

A couple of months ago, India had blocked a similar investigation of a complaint filed by the European Union. Subsequently, a panel to investigate the matter was set up in the Dispute Settlement Board of the Geneva-based trade referee.

According to the WTO rules, a country can veto an investigation on charges of unfair trade practices like high duties or anti-dumping measures only once. A second request is approved automatically, paving the way for the setting up of a probe panel.

According to press report from Geneva, the second investigative panel examining Washington's arguments will almost certainly be established at a meeting later this month of the WTO's dispute settlement body.

India imposes an additional duty of 25 per cent to 150 per cent ad valorem on imports of spirits, while for wines, the figure ranges between 20 per cent and 75 per cent. Over and above that, a 4 per cent additional duty is charged on imported liquor.

All these duties are charged in addition to the basic Customs duty, which ranges between 100 per cent and 150 per cent. The effective duty is somewhere between 250 per cent and 550 per cent, depending on the brands and on the state.
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