 "A vendor arranges price tag over sack filled with sugar at wholesale vegetable market in Ahmedabad")
The food ministry is considering revoking its order for compulsory export of 3.2 million tonnes (mt) of sugar and is open to lowering import duty in order to keep the price of the sweetener under control.
The government had asked sugar mills to export 3.2 mt in the current 2015-16 marketing year (October-September) to offload surplus stock in the domestic market that depressed local prices.
The mills have exported about 1.4 mt of sugar so far and are likely to ship only 1.5 mt by the end of September with exports being virtually stopped.
“The government is considering to revoke compulsory sugar export order because of not-so-conducive prices. In fact, despite the policy decision, the government had to push mills for exports,” a source said.
“There are sufficient sugar stocks in the country for the current and even next year. Physical imports of sugar are not required, but if there would be any manipulation and artificial spike in sugar prices, then the government is open to tweaking import duty,” the source added.
At present, there is 40 per cent import duty on sugar.
Sugar production of India, the world’s second largest producer after Brazil, is estimated to decline to about 25 mt in the 2015-16 marketing year as against 28.3 mt in the previous year.
With retail sugar prices crossing Rs 40 per kg, the Centre last week allowed the states to fix the stock holding limit on sugar to check hoarding and control rising prices.
The Cabinet has given its approval to bring sugar under the purview of stock holding limit, keeping in view the recent uptrend in prices, an official statement had said.
CHECKING PRICES
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Govt open to lowering import duty to keep prices of the sugar under control
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The govt had asked sugar mills to export 3.2 mt in the current marketing year (October 2015-September 2016) to offload surplus stock in the domestic market
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The mills have exported about 1.4 mt of sugar so far and are likely to ship only 1.5 mt by the end of September
- At present, there is 40 per cent import duty on sugar
