New Delhi: With the sugar prices rising sharply due to low availability, the government has decided to allow duty-free imports of up to 1 million metric tonnes of raw sugar.
According to the Commerce Ministry, the import quota will be available until October 31, ahead of the festive season when sugar consumption typically rises due to increased demand for traditional sweets.
India currently imposes a 100 per cent duty on sugar imports.
Domestic sugar prices have climbed nearly 40 per cent over the past two months as lower production has tightened supplies.
The supply squeeze has prompted India to turn to imports for the first time in nearly a decade.
The announcement triggered a rise in international sugar prices, with benchmark white sugar futures in London and raw sugar futures in New York gaining as much as 4 per cent.
The government has opened the 1 million-tonne quota to port-based sugar refineries that import raw sugar duty-free for refining and traditionally export the resulting white sugar.
These refiners will now be allowed to sell refined sugar in the domestic market from imported raw sugar.
Sugar mills and refiners with operational capacity to process raw sugar into white sugar have been asked to apply for the zero-duty tariff-rate quota between 21 August and 28 August.
Preference will be given to importers that commit to completing imports by 15 October. (BVI)
