Govt adds sweetener ahead of festivals SWEET SURPRISE

Allows import of 300,000 tonnes of raw sugar at 25% concessional duty

The government has allowed import of 300,000 tonnes of raw sugar at a concessional duty of 25 per cent to augment domestic supplies ahead of the festive season.

It had hiked the import duty on sugar in July to 50 per cent, from 40 per cent to curb dumping of the commodity in India as international prices fell.

“To supplement the availability of sugar in southern India and to stabilise sugar price, import of 300,000 tonnes of raw sugar through southern ports of India at 25 per cent import duty under open general licence (tariff rate quota) has been allowed through millers/refiners,” a statement from the food ministry said.

Food and Consumer Affairs Minister Ram Vilas Paswan said the import was allowed to increase the domestic availability and maintain retail prices at reasonable level.

“If required, we will import more, but we will not allow consumer prices to rise abnormally,” Paswan told PTI. Retail prices of ~42-43 per kg is reasonable, he added.

The imports will be allowed through the ports of Tuticorin, Karaikal, Chennai, Mangalore, Kakinada, Gangavaram and Vishakapatnam, the statement said.

The food ministry said such imports shall be open to millers/refiners who have

Move aimed at addressing crisis in southern states and stabilise price

Sugar production in India estimated to decline to 21 mt in the 2016-17 season, from 25 mt in the previous year Annual demand is 24-25 mt Sugar is selling at an average price of ~42 per kg in retail market, while the branded one is available at ~50 per kg their own capacity to convert raw sugar into refined /white.

Sugar production in India, the world’s second-largest producer, is estimated to decline to around 21 million tonnes (mt) in the 2016-17 season ending September from 25 mt in the previous year. The annual demand is 24-25 mt.

National Federation of Cooperative Sugar Factories Managing Director Prakash Naiknavre said the decision was “in the right direction because southern states, especially Tamil Nadu, were reeling under the third consecutive year of drought and not having adequate sugarcane for the next crushing season. As a result this crushing capacity with the mills would have remained unutilised”. The raw sugar arriving at October-end will be handy to attain adequate utilisation of crushing capacity, he added.

On the impact on sugar prices, Naiknavre said: “This will not have an impact on prices on all-India basis because the quantity is limited and arriving at restricted ports in the southern states”.

The government had in April allowed duty free import of 500,000 tonnes of raw sugar to boost domestic supply. Last month, it had imposed a stock limit on sugar mills for the next two months to keep prices in check during the festive season. By September-end, a mill cannot keep more than 21 per cent of its total sugar availability for the entire 2016-17 marketing year and a factory cannot hold more than eight per cent at the end of October, according to a government notification issued last month.

Sugar is selling at an average price of ~42 per kg in the retail market, while branded sweetener is available at ~50 per kg.

White sugar prices in the international market have fallen eight per cent since July, but raw sugar prices have remained flat. The domestic wholesale prices of sugar are also flat.