Media365
India has allowed duty-free imports of 1 million metric tonnes of sugar as prices climb nearly 40% in two months, raising concerns over supplies ahead of the peak festival season.
India on Thursday allowed duty-free imports of 1 million metric tonnes of sugar, in a move aimed at easing domestic supplies and bringing down prices that have surged sharply ahead of the festive season, the government said in an order.
Sugar prices have risen by nearly 40 per cent over the past two months amid tightening supplies, putting pressure on consumers and prompting the world’s biggest sugar consumer to turn to imports for the first time in nearly a decade.
The decision comes as India seeks to improve domestic availability and contain the impact of rising sugar prices during a period when demand typically strengthens because of festivals.
The duty-free import allowance is expected to help augment supplies in the domestic market and ease price pressures, while also providing relief to consumers facing higher sugar costs.
India’s move marks a significant shift after years of managing sugar supplies largely through domestic production and trade policies. The country is one of the world’s largest sugar producers as well as its biggest consumer.
