New Delhi: India is considering a cut in import duty on sugar from the current 40% owing to increasing inflation and downward revision of production targets by sugar mills, government officials said. India is the world's biggest aggregate consumer of the sweetener and often imports the commodity when local output falls, to prevent prices from soaring.
New Delhi: India is considering a cut in import duty on sugar from the current 40% owing to increasing inflation and downward revision of production targets by sugar mills, government officials said. India is the world's biggest aggregate consumer of the sweetener and often imports the commodity when local output falls, to prevent prices from soaring.
He said the food ministry has not sent any proposal to the Centre to reduce the import duty or allow imports but that other ministries such as commerce, finance and statistics may take the decision soon in view of the increasing inflation.
In February, sugar and confectionery saw 18.83% inflation, up from 18.69% in the previous month, as per the Consumer Price Index.
Another official that the ministry is watching the global price movement, apart from the crop position in Brazil. “At most, domestic production will be 19.5 million tonnes.Global prices are weak and there is very less time to make a decision on import. The government should soon take a decision,“ said Narendra Murkumbi, vice chairman of Shree Renuka Sugars.
Murkumbi said imports should be considered since in summer there is a tendency for prices to rise owing to increase in demand and consumption. “We are concerned that banking on wrong production numbers, it may lead to a wrong policy,“ he said. With global prices falling port based sugar refiners such as Shree Renuka Sugars, EID ParryBSE 0.73 %, Simbhaoli SugarsBSE 4.97 % and ED&F Man will be comp ..
Source: economictimes.indiatimes.com