In order to allow millers to sell duty-free imported sugar in the domestic market, the decision on altering sugar import norms has been deferred by the Government.

According to a senior Government official, "The issue came up for discussion in the meeting of the Cabinet Committee on Economic Affairs (CCEA) but it calls for further deliberation."

Currently, the duty-free import of raw sugar is permitted by India on the condition that it will be exported by the importers after refining within two years. The sugar is not allowed to be sold in the domestic market by them.

However, millers have been pushing for raw sugar imports on a tonne- to-tonne basis, with estimated decline in the sugar output that would let them sell imported sugar in the domestic market following refining and export the same quantity later.

There might be a fall by 32 per cent to 18 million tonne in the output of India's sugar this year from about 26.4 million tonne last year. A whopping 22 million tonne of sugar a year is required by India for domestic consumption.