Taking Stock: Window to process and sell imported sugar extended

Pune: The Centre has eased norms giving importers two months instead of the October 31 deadline announced earlier for selling imported sugar in the domestic market.

According to the original notification issued August 20 allowing imports of 1 million tonnes of tariff rate quota (TRQ) of raw sugar, the importer had to process it into white/refined sugar and sell it in the domestic market by October 31 in any case.

The latest step permits importers to sell processed sugar in the domestic market within a period, not exceeding two months, from the date of filing of bill of entry.


Also read: Wholesale buyers savour softening sugar even as households' wait for a sweeter deal continues

The government approved the measure after domestic ex-factory sugar prices reached a record more than ₹60 per kg.

Sugar millers however told the government that it is difficult to complete selling imported and processed sugar by October 31 as it takes around 40-45 days to import sugar after getting the requisite legal approvals.

"Although the government has allowed 1 million tonnes of import, we were hoping that only about 300,000 to 500,000 tonnes could get imported due to the short window to sell it in the domestic market," said a sugar exporter from Maharashtra, requesting not to be named.

According to government estimates, India is expected to have a closing stock of 3.2-3.5 million tonnes of sugar on September 30, lower than the government target of more than 4 million tonnes to meet an expected surge in demand during the festive months of October and November.