New Delhi: The government has revised the timeline for processing and selling duty-free imported raw sugar and allowed importers up to two months from the date of filing the bill of entry to convert the sugar into white or refined sugar and sell it in the domestic market.
The Directorate General of Foreign Trade (DGFT) amended the modalities notified — earlier in August — for the import of 10 lakh tonnes of raw sugar under the tariff-rate quota (TRQ) scheme.
Under the earlier provision, raw sugar imported under the TRQ was required to be processed into white or refined sugar and sold in the domestic market by October 31.
The revised provision removes that fixed deadline and stipulates that importers must process and sell the imported raw sugar within a period not exceeding two months from the date of filing the Bill of Entry.
In addition, the government had on August 20 allowed duty-free imports of 1 million tonnes of raw sugar under the TRQ scheme until October 31 amid a sharp rise in domestic sugar prices ahead of the festive season.
However, the latest amendment does not change other terms and conditions of the August 20 notification.
The government had also permitted a one-time conversion of existing Advance Authorisations issued under SION E-52 into the TRQ scheme for raw sugar actually imported under those authorisations up to August 20.
The conversion covers refined sugar already produced as well as sugar to be produced from the imported raw sugar which is subject to payment of GST exempted at the time of import and other prescribed conditions.
The government’s decision comes as it steps up efforts to improve domestic sugar availability and contain price pressures ahead of the August-November festive period when demand typically rises.
Additionally, industry leaders and experts said that India has sufficient sugar stocks to meet domestic demand and prices are likely to moderate over the next few weeks as supplies improve.
The sharp increase in sugar prices over the past 15-20 days was driven largely by market sentiment, speculative buying and concerns over short-term supply, rather than any structural shortage, says ISMA Director General Deepak Ballani.
According to Ballani, sufficient sugar would remain available until the end of the current season on September 30 and the market situation is expected to improve shortly.
ISMA President Neeraj Shirgaokar also assured consumers that the country has adequate stocks and there would be no difficulty in meeting demand, including during the upcoming festive season.
(IANS)
