According to Shishir Bajaj, president, Indian Sugar Manufacturers Association (ISMA), sugar imports at zero duty is playing havoc with the domestic industry. ``India is the only country in the world with zero per cent duty on sugar. The Indian sugar industry, the largest producer of sugar in the world with a likely production of 12.1 million tonnes this year, is in serious trouble due to irrational policies of successive governments,'' he said.

He said Bangladesh had imposed 200 per cent duty on sugar, USA 130 per cent, Thailand 104 per cent, South Africa 124 per cent, Columbia 130 per cent and Philippines 133 per cent.

Bajaj said the country does not need any imported sugar when it is carrying a stock of 10.1 million tonnes as on March 15, 1998 (free 8 million tonnes and levy 2.1 million tonnes).About 6.5 lakh tonnes of imported sugar have already been registered with APEDA by private trade including multinationals, out of which four lakh tonnes of sugar have already landed in the country. ``This unwanted import has only accentuated the problem of excessive stock of free sale sugar,'' he said. ``Dumping of imported sugar at zero duty, purchase of free sugar to meet levy deficit and delay in the increase of levy sugar prices are some issues that are posing major threat to the sugar industry,'' Bajaj said. European Union, which is the principal exporter of white sugar, sells sugar at about $ 800 per tonne in its domestic market and dumps it in the Indian market at a CIF (cost including insurance and freight) price of around $ 310. ``This dumping should be stopped forthwith,'' he demanded.

The international sugar price has declined to as low as $ 265 FOB (freight on board) per tonne. Moreover, Pakistan's entry as an exporter having cleared an export of three lakh tonnes has considerably increased thepossibility of further large scale imports which will have a long term disastrous impact on the Indian sugar sector. ``Taking advantage of this policy, several multinational sugar trading houses have established outfits in India and are responsible for bulk of such imports,'' he said.

The government in its wisdom has not even considered it desirable to levy the special customs surcharge of five per cent on sugar, which is applicable to all commodities imported in the country.