India allows duty-free sugar imports for domestic sale

The government has decided to allow duty-free import of sugar for sale in the domestic market, in view of the projected slump in output and rising retail prices of the commodity.

Commerce minister Kamal Nath said the cabinet committee on economic affairs has taken up the issue in view of an expected decline in domestic sugar output in the current year.

"Yes, it has been permitted," he said. However, the CCEA is yet to make an announcement to this effect, he added.

India, the second-largest sugar producer in the world, expects domestic production to fall by 32 per cent to 18 million tonnes this year from about 26.4 million tonnes last year.

The country needs 22 million tonnes of sugar a year for domestic consumption. The easing of the import regime would help to fill the gap between domestic consumption and availability of the sweetener.

The government currently allows duty-free import of raw sugar on the condition that the refined product is re-exported within two years. They are not allowed to sell sugar in the domestic markets.