UK'S
SUCDEN GETS NOD TO ENTER WHOLESALE MARKET
Even as the government
is keenly watching sugar prices, the Indian arm of UK-based
multinational Sucden has been allowed to enter wholesale trading
in sensitive commodities.
A fully-owned subsidiary
of the global leader, Sucden India, has been allowed to import
sugar in bulk for export and ex-warehouse sales.
While clearing
a long-pending proposal of the company, the FIPB has emphasised
that retail trade, a sensitive segment which is still on the
negative list, was out of bounds.
FIPB's mandate
allows Sucden to purchase and sell sugar in the domestic market
and set up infrastructure facilities for material handling,
bagging and bulking systems and warehousing.
According to sources,
the board's green signal for the proposal from the 100% arm
of Sucden in India came after the directorate of sugar stated
that conditional approval can be granted.
Sources said the
FIPB was awaiting the views of the directorate, which is part
of the food and public distribution department. The board
has also stipulated that imported sugar should not be diverted
to the local market.
Imports should
be used only for re-exports, Sucden India has been told. Based
in the UK, Sucden India's parent is one of London's leading
commodity and financial futures brokers.
The MNC has operations in many parts of the world, including
Russia and South America.
Sucden India already
has permission to purchase domestic sugar for exports and
import raw sugar for value-added re-exports. The company has
also been permitted to provide logistics management expertise
to Indian sugar exporters.
As per the suggestions
made by the directorate of sugar, the permission granted to
Sucden will be on the same lines as the clearance granted
earlier to Cargil Asia Pacific and Louis Drefus.
While Cargil deals
with trading in agri commodities, Louis Drefus handles the
processed food business.
The request from Sucden for wholesale trading in sugar was
pending since August '04.
The FIPB had to
goad the directorate of sugar to firm up its views on the
plea with little success till December. Finally, the conditional
green signal from the directorate was conveyed on January
17, '05.
It is understood
that the department of commerce as well the department of
industrial policy and promotion felt that the MNC's plea can
be cleared.
