India Approves Duty-Free Import of 1 Million Tonnes of Raw Sugar Amidst Rising Prices
Summary
India has exempted customs duty on the import of 1 million metric tons of raw sugar as retail prices climb to as high as 65 rupees per kilogram. Weak monsoon conditions, tighter domestic supply and festival-season demand are driving the surge, with the impact of imports likely to be felt around October.
Key Points
- The Indian government will allow duty-free imports of 1 million metric tons of raw sugar to curb rising prices.
- Sugar prices have climbed sharply, with the average retail price reaching 55.70 rupees per kilogram on August 20.
- Weak monsoon conditions, supply pressure and festival-season demand are key reasons behind the increase, while ethanol is not seen as the main cause.
- Brazil is expected to be a major source of imports, but the effect may not show up in the market immediately.
