India extends deadline to surrender sugar import quota
However, importers will have to pay 0.5% of the CIF value of the surrendered quantity
The Directorate-General of Foreign Trade (DGFT) has extended the deadline for sugar importers to surrender their quota under the 10 lakh tonne TRQ scheme until September 30. If importers are unable to import under the scheme, they will have to pay 0.5 per cent of the CIF value of the surrendered quantity. The government had earlier allowed import of raw sugar at zero duty, and about 8 lakh tonnes of the announced 10 lakh tonnes were approved for import.
Refiners, who had already imported raw sugar at zero duty for re-export, sought permission for 2.65 lakh tonnes for domestic sales. On August 31, the government permitted two refiners to import 50,000 tonnes each and later allocated an additional 1 lakh tonnes to them for domestic sales in September. Ashwini Srivastava, a joint secretary with the Food Ministry, emphasized that mills should sell sugar at reasonable prices, and the government would take corrective measures to maintain price stability.
He attributed the price rise to hoarding, stating that the surge was not due to increased demand but anticipation of price hikes during the festival season. Despite a slight decrease in ex-mill prices, retail prices remain high, with many places seeing prices between Rs 60-70/kg, compared to Rs 45-50/kg in July. The government maintains that adequate sugar stocks are available to meet domestic demand, with production expected to be around 306 lakh tonnes for the current season, down from the initial estimate of 343 lakh tonnes due to diseases affecting the cane crop.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
