India has allowed duty-free imports of up to 1 million tonnes of raw sugar until October 31. This move aims to stabilize rising domestic prices ahead of the festive season. The government announced this measure on August 20. It marks the first major sugar import in nearly a decade, as local sugar prices have jumped sharply in recent weeks.
Key Details
The average retail price of sugar rose 13% month-on-month to ₹54.06 per kilogram on August 19. This is up from ₹47.82 per kilogram, according to data from the consumer affairs ministry. The government currently charges a 100% duty on raw sugar imports. However, the new policy allows mills and refiners with in-house refining capacity to import sugar tax-free. Applications for imports will be accepted from August 21 to August 28.
Ashwini Srivastava, a joint secretary in the food ministry, said this "proactive step" will help ensure enough supply and stable prices for consumers. The government has also tightened stockholding limits for bulk consumers. The permissible stockholding period will be reduced from 30 days to 15 days, effective September 1 to November 30. This measure aims to improve market availability during the high-demand festive season.
Background
India last imported sugar for domestic use almost ten years ago. The government’s decision follows several measures aimed at curbing speculation and ensuring market stability. Additionally, refiners can divert some of the imported sugar to the domestic market after processing. However, all processed sugar must be sold locally by the end of October.
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This decision is likely to affect sugar prices and availability in the domestic market, especially as the festive season approaches. The move could also influence global sugar futures, which have already increased following the announcement. Watch for further developments on sugar stockholding rules and price changes in the coming weeks.
Based on reporting by: livemint.com