Government allows duty free white sugar imports

The government has issued a notification allowing white sugar imports at zero duty till September 30, a government official said on Wednesday.

The official, however, said the quantum of imports has not been decided yet. Duty on wheat imports by private players will be decided soon, the official said.

It has been decided that sugar imports will be duty-free while the notification with regard to duty on wheat imports will be issued "soon", the official said.

White sugar imports used to attract a 60 per cent duty.Agriculture Minister Sharad Pawar had said the duty structure for private players importing wheat will be announced in a week's time.

At present, only government imports wheat are at zero duty while private players have to pay a duty of 50 per cent.

Last Thursday, the government had allowed imports of wheat and sugar to curb the soaring prices of these essential commodities.

Earlier, pulses had been exempted from 10 per cent customs duty to facilitate imports. The sugar industry however, is not optimistic as international prices have been soaring and will make the landed cost of the sweetener higher than current domestic prices.

At present, London white sugar sells at about $470 per tonne, close to Rs 22,000.

Experts said with the Rs 850-per-tonne countervailing duty, costs will be higher still and transportation costs and various taxes within the country will only add to the amount.

Retail prices would then be closer to Rs 26-28 per kg, compared with the current Rs 19-21.