India allows duty-free imports of 10 lakh MT of raw sugar to curb prices

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 on Thursday, 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.
According to agency reports,Sugar prices in India have risen by nearly 40% in ⁠two months as lower production has tightened supplies, forcing India to import sugar for the first ​time in nearly a decade. The measures come amid concerns over rising sugar prices, which have also been linked to the impact of prolonged rains and dry weather on sugarcane cultivation. Benchmark white sugar futures in London and raw sugar futures in New York ​jumped by as much as 4% after India announced plans to allow duty-free imports on Thursday. India imposes a 100% duty on sugar imports.
Meanwhile, India has banned sugar exports with immediate effect until September 30, as per a notification from the Ministry of Commerce & Industry in May. The decision shifted the export status for various sugar categories from the "restricted" list to the "prohibited" category.

The Govt also imposed a sugar stockholding limit for bulk consumers and allowed the duty-free import of 10 lakh metric tonne of raw sugar till the end of October. The move assumes significance given how the festive season is round the corner. The stockholding limit applies to confectioners, soft drink manufacturers, food processing industry, sweetmeat sellers and any other institutional buyer consuming not less than ten metric tonne of sugar as average monthly consumption during pat nine months.