AMN
The government has allowed duty-free imports of up to 10 lakh metric tonnes of raw sugar until 31st of October this year. The Directorate General of Foreign Trade (DGFT), in a notification issued today, said imports of raw sugar will be allowed without duty under a tariff rate quota (TRQ) of 10 lakh metric tonnes, subject to specified conditions. The move comes ahead of the festival season, when sugar demand typically increases, and follows concerns over supplies in the domestic market. India is the world’s second-largest sugar producer.
Sugar prices in India have climbed to record levels, with Uttar Pradesh’s M-grade sugar reaching an ex-factory price of Rs 5,400 per quintal on August 18. A 5% GST is applicable over and above the ex-factory price. The sharp rise is expected to continue in the coming days, adding to the Centre’s concerns over domestic sugar supplies and prices, Rural Voice reported.
Despite lower production, sugar exports and the diversion of sugarcane-based feedstock toward ethanol production are expected to push closing stocks at the end of the current sugar season to a record low. The tightening supply situation is already being reflected in domestic prices