Simbhaoli Sugars today said it has contracted 40,000 tonnes of raw sugar from Brazil and will start processing the sweetener from the third week of June.
"We have contracted 40,000 tonnes of raw sugar from Brazil at less than 330 dollars per tonne.The shipment is on its way and we will start refining the raw sugar from June third week," Simbhaoli Sugars Executive Director G S C Rao told PTI on the sidelines of a CII function here.
Earlier, the Uttar Pradesh-based sugar company had contracted 20,000 tonnes of raw sugar from Brazil. Rao noted that the company is importing raw sugar as there is a margin of Rs 400 a quintal against refined sugar.
Simbhaoli has three sugar mills in Uttar Pradesh with a sugarcane crushing capacity of about 20,000 TCD. In order to augment the domestic availability of sugar, the Centre had allowed mills in February to import duty-free raw sugar, with export obligation, till September.
But, earlier this month, it allowed mills to import duty-free raw sugar without export obligation till August 1.The Centre has also exempt the mills from levy obligation if they import raw sugar. Under levy system, mills have to sell 10% of their production to the government at a cheaper rate decided by the Food Ministry.