Duty-free refined sugar import cap may be raised by 1 mt

Written by Press Trust of India | New Delhi | Updated: Oct 29 2009, 05:34am hrs
The government is planning to raise the cap on duty-free refined sugar import by 1 million tonne once the current limit is exhausted, to prevent upward spiral of domestic prices triggered by supply concern.

Earlier, the Centre had allowed traders to import up to 1 million tonne of duty-free white sugar till November 30.

Once the current limit (on quantity) is exhausted, we plan to increase it by another one million tonne, a senior government official said, adding that the November deadline for duty-free white sugar import will also be extended.

The country has so far contracted to import about eight lakh tonne of white sugar, of which three lakh tonne have already landed, the official said. India, the world's largest consumer of sugar, decided to import sweetener to bridge a projected deficit of about 7.5 million tonne between production and demand during 2009-10.