India sugar imports set to stop after import duty hike
Jul 05, 2013 05:20 PM EDT | By Staff Reporter
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.
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.
Like Us on Facebook
"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.
The year has had plenty of innovations under its belt. From the world of the culinary arts to the technological inventions, the innovative bug has bitten and bit hard. There are plenty of foods to look forward to on a restaurant menu. However, certain recipes and foods have cut a mark above the rest and are now causing whirlwinds and taste bud cravings across the globe. Today we will look at a few of these foods. Here are out top three:
Mornings can be a drag. Breakfast, the most important meal of the day, doesn't do much to kick the body's reflexes into action. If the traditional cereals, fried eggs and bacon is not an ensemble that does it for you, you might want to consider this amazing recipe I guarantee you will fall in love with
The Trinidad scorpion pepper (full name Trinidad scorpion 'Butch T' pepper, which derives from the Trinidad moruga scorpion) was named the hottest pepper on Earth by the Guinness Book of World Records in 2011 and retained that spot for a full 3 years … but now, the famous book of records features a new extremely hot pepper: the Carolina Reaper.
America's top three soda makers have agreed to cut down soda calories by 20%. In an agreement signed by representatives of Coca cola, Pepsi and Dr. Pepper Snapple Group Inc, the soft drink manufacturers declared they would be reducing the calories consumption of soda lovers across the United States by 20%.
If you’re visiting Japan at the moment and you’re already concerned with Halloween treats, there’s a great option for you: Japan’s gummy bug sweets.
Vagina Cookies – Sometimes a story is so good that it needs to be shared with the world. And sometimes that story is not only good but a real one and the quality becomes even better. What took place in a school is that a mother brought cookies to share with the children. They did have a particularity, though: they were vagina-shaped cookies.