The Economic Times, in its recently published report citing confidential official sources, claimed that Indian government has been pondering to extend tax-free white sugar import in a bid to control ever increasing prices of sugar in the domestic market.

Government had permitted state firms to import up to 1 million tonnes of duty-free white sugar in April 2009. The scheme was later extended to private trades as domestic production declined due to unfavorable weather conditions in parts of India, the world's biggest consumer of sugar. Sugar production is expected to remain around 16 million tons in the 2009-10 against the demand of annual demand is 23 million tons.

Sugar has been continuously turning bitter for common man with its domestic prices soar more than 20 per cent since January 1 making it difficult for households to have its taste at such high prices.

Meanwhile, Agriculture and Food Minister Sharad Pawar said that shortfall is there also due to the ban imposed on imported raw sugar in UP. He added, "Had the imported raw sugar been refined, around 200,000 tons to 250,000 tons of additional sugar would have been available in the market per month."