A number of large sugar mills based in Uttar Pradesh are planning to participate in the raw sugar import programme to extend operations of their refineries despite risk on profit margins due to high in land transportation cost from the designated ports to the refinery. Sugar mills participating in imports are assessing the financial viability of converting raw sugar into refined sugar and selling the sweetener in and around UP. The state is already flush with sugar this year with its estimated production of 8.7 million tonnes, which accounts for nearly 40% of the 20.3 million tonnes output estimated for the current crushing season. The landed cost of imported raw sugar from Brazil currently stands at Rs 31.50 a kg as against the current prevailing price in and around UP at Rs 35.50 a kg (ex-factory). Estimating Rs 2 as transportation and refining costs, UP sugar mills will be able to sell the sweetener with Rs 2 a kg of profit. Faced with a sharp deficit in sugar availability in the Western and Southern Indian states, including Maharashtra, Gujarat, Tamil Nadu, Karnataka, Andhra Pradesh and West Bengal, the government allowed 300,000 tonnes of raw sugar import through ports in the South zone and 150,000 tonnes and 50,000 tonnes of the unrefined sweetener import through the West and East zones, respectively. Interested importers may apply to the designated regional offices of the Directorate General of Foreign Trade until April 23 and quota allocations under TRQ will be handed out on April 27, valid for import up to June 30. For actual import, however, the importers need to apply with the Agricultural and Processed Food Products Export Development Authority, which would issue a non-transferable registration–cum-allocation–certificate on first come first serve basis with a validity of 45 days. The certificate would be extendable for a similar period of 45 days.