Import NewsNo Comments
The government has permitted import of 3,00,000 tonnes of raw sugar to control the shortage of the item in the South Indian States. This import will be allowed under the open general license at a duty of 25% and will increase the availability and control the prices in the affected states as per the food ministry.
Sugar attracts an import duty of 50% presently which makes it expensive to import. Previously in this year, the government had permitted import of 5,00,000 tonnes of sugar at zero duty to increase the supply in the local market. This sugar import will be only permitted through the ports of Tuticorin, Karaikal, Chennai, Mangaluru, Kakinada, Gangavaram, and Vishakhapatnam.
The ministry added that refiners and millers with the capacity to process sugar will also be allowed to import and they can apply to the Directorate General of Foreign Trade (DGFT) for the license until September 12.
Indian Sugar Mills Association (ISMA) has estimated that that sugar production will increase by 24% and reach 25.1 million tonnes in coming marketing year (October-September). This increase will be because of 9% increase in area under sugarcane cultivation in Kharif season of 2016. India is the second largest producer of sugar after Brazil and 20.2 million tonnes production has been estimated in the marketing year 2016-17 as per ISMA.
Just last week the center had announced the stock limits on the sugar mills to control the prices from surging in the coming festival time. The stock limit for September has been decided to be not more than 21% of total output of the current year and by end of October, this figure has to be further reduced by 8%. The government has decided on this move to check on the prices from surging during the upcoming festive season.