India allows tax-free sugar import in rare move to cool prices

India has taken a rare move to import tax-free raw sugar in an effort to curb record local prices, allowing mills and refiners to import up to 1 million tons until October 31 without any taxes. The government's decision, announced by the commerce ministry, applies only to companies with in-house refining capacity. The move is expected to ease tight supplies and stabilize prices ahead of the festival season, which typically sees a surge in domestic demand for sweets and processed foods.

The measure comes as world sugar futures have surged, and it follows a government crackdown on stockpile limits for dealers and bulk users.

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