Union government is likely to review the sugar export-import targets for the financial year 2008-09 to provide sugar for the domestic consumption at reasonable prices. It can go for more import of raw and white sugar to check the sugar prices in the domestic market. The government is concerned over the reports of fall in sugar output below 20 million tonnes (mt) in the current season. Thus, it is considering all options.

A government official said, "The production estimates coming from some leading sugar cane producing states (for the current sugar season from October 2008 to September 2009) are not very encouraging. The government is expecting that the overall sugar production may fall further by 1mt or so (from 20.5mt)."

Government may relax norms for the raw sugar import for sale in the domestic market. Leading sugar companies are already lobbying for such relaxation in norms to import raw sugar from the international market at cheep prices. It is to be noted that the current norms allow import of sugar for re-export and refining.

Sugar consumption in local market may cross 22mt limit for FY09. Union Agriculture Ministry is in touch with several sugar companies and cooperatives to chalk out plans for meeting the shortfall.

However, economists and industrialists termed the government's intentions to import sugar as politically motivated. Former president of the Indian Sugar Mills Association, Ranjit Puri, said, "The stock position in the country is very comfortable. Even according to the most pessimistic estimate, we will have a four months sugar stock as on October 2009. We, therefore, see no justification to promote import of sugar at present."