New Delhi, April 5
The government today allowed duty-free import of raw sugar up to 5 lakh tonnes to boost domestic supplies and check the price rise amid fall in the production.
The duty-free import will be allowed until June 12, states a notification. As per government estimates, the sugar production in the country is projected to drop to 22.5 million tonnes in the ongoing 2016-17 marketing year from 25.1 million tonnes last year.
While there is no shortage of sugar, says the government, the aim is to address regional production gaps and maintain prices at reasonable levels. Considering the quantity of sugar available as opening stocks and the production in the current sugar season, it is estimated that there is adequate quantity of sugar available in the country for domestic consumption, states the notification.
As per industry estimates, the output is expected to range between 19.7 and 20.3 million tonnes this year (October 2016-September 2017), almost five million tonnes lower than the last year. In other words production in India, the world's second largest producer and consumer, will be lower than the annual requirement of 25 million tonnes. The import will be done with zonal quantity restrictions and open for only millers/refiners having their own refining capacity.