India sugar imports set to stop after import duty hike

Jul 05, 2013 05:20 PM EDT | By Staff Reporter

  • print
Sugar
Sugar (Photo : Flickr )

India, the world's top sugar consumer, is raising the import duty on the sweetener to 15 percent from 10 percent currently to discourage overseas buying amid a drop in local prices due to ample supplies, two government sources said.

Like Us on Facebook

The duty increase could add to global sugar stocks and pressure prices further by halting India's sugar imports, which have already slowed to a trickle following a sharp drop in the rupee.

"In yesterday's meeting, food, finance and agriculture ministries have agreed to increase the duty to 15 percent," said a senior government official, who declined to be named.

"Informally, it has been agreed upon to increase the import duty on sugar, but a formal order in this regard has to come from the finance ministry," said another official at the food ministry.

Indian mills and traders mainly import raw sugar and sell it in the local market after refining. India has been importing sugar despite a surplus local production as the sweetener is cheaper in the world market due to a bumper sugar output in Brazil.

In New York, the front-month raw sugar contract fell to a three-year low of 16.02 cents a pound last week, weighed down by hefty global supplies.

India has imported around 700,000 tonnes sugar so far in the current marketing year that started on Oct. 1, 2012, including imports of 100,000 tonnes white sugar, Abinash Verma, director general of the Indian Sugar Mills Association, told Reuters.

Since the beginning of the season, sugar prices have fallen 14 percent in the local market.

"In the last two months hardly anyone was importing raw sugar except Shree Renuka Sugars. The weak rupee has already wiped out whatever margin refiners have. In addition, higher duty will close import doors," said Kamal Jain, managing director of brokerage Kamal Jain Trading Services.

India's biggest sugar refiner Shree Renuka is planning to export refined sugar from its Haldia unit as returns are higher in the overseas market, Narendra Murkumbi, managing director of Shree Renuka Sugars, told Reuters in an interview on Thursday.

India is likely to produce 24.6 million tonnes of sugar in 2012/13, an industry body has said, against an annual demand of about 23 million tonnes. 

© 2015 Food World News. All rights reserved. Do not reproduce without permission.
Get the Most Popular Food Stories in a Weekly Newsletter
TrendingOn The Web
Food Biz
Sugar-Sweetened Beverages

Drinking Sugar-Sweetened Beverages During Adolescence Weakens Memory, New Study Finds

Sugar-sweetened beverages were found to cause tooth decay and affects blood sugar.

Illegal Shark Fins

Illegal Shark Fins Sold In Royal China Club Restaurant Confiscated

Hoards of illegal Shark Fins had been impounded and destroyed by the Trading Standards in one of the most elite Chinese restaurant in London. Confiscation of the illegal shark fins comes after its restaurant manager admitted selling shark fins and other exotic dishes not indicated in its menu in January.

Robot Chef

Robot Chef: Futuristic Robot That Can Make Anything You Wish For From Simple To Elaborate Dish

Robot Chef, the sophisticated invention of London-based Company, Moley Robotics has launched a sample robot that can literally make a total of 2,000 dishes. Robo Chef was unveiled this week during Hannover Messe trade fair that was held in Germany by demonstrating tasty crab bisque.

Food Tech
Chef

The Top 10 Secret Weapon Ingredients from the Star Chefs

Just today, February 25, 2015, Yahoo! Food posts the secret weapon ingredients used by Star Chefs to achieve the most palatable dishes at home or in a restaurant. The said website revealed the top 10 magical ingredients that can turn home-cooked meals into top class restaurant tastes.

Burgeoning Craft Beer Industry Creates Niche Market For Limited Release Beers

Next Glass App: The App That Chooses Wine And Beer You’ll Love!

For those who love to have a nice glass of wine or beer during the weekends - which is just about everyone or almost -, there's a new way to keep the guessing out of the way you choose what to drink: the Next Glass app chooses drinks according to what you love!

A national survey done by the North Carolina State University and the University of Minnesota representatives suggests that most U.S. consumers are ready to accept genetically modified and nanotech products if it is enhanced with nutrition and are safe.

U.S. Consumers, Ready To Accept Genetically Modified, Nanotech Products If It Is Healthy And Safe, New Survey Reveals

A national survey done by the North Carolina State University and the University of Minnesota representatives suggests that most U.S. consumers are ready to accept genetically modified and nanotech products if it is enhanced with nutrition and are safe.

Real Time Analytics