India raised charges fourfold on detention of imported sugar and lentils at ports to prevent hoarding of the food items, a minister said.
The higher demurrage charges will apply if the commodities are held for more than 21 days, G K Vasan, minister of shipping, said in a written reply to a question in parliament. The rates will remain valid until March 31, next year.
India is taking measures to increase food supplies after a drought faced by world’s second-largest producer of sugar, rice and wheat pushed inflation to a 10-month high. Retail prices of sugar and lentils have more than doubled this year, prompting authorities to raid wholesalers hoarding commodities.
Sugar producers and traders imported 2.29 million tonnes of raw sugar and 225,000 tonnes of white sugar in the 2008-2009 season to bridge a deficit, according to the food ministry. The country purchased 480,000 tonnes of lentils in the year started April 1, the ministry said. Of the imports, 297,000 tonnes arrived at ports until November 5, it added.