3-3.5 lakh tonnes of refined sugar to enter domestic market after government nod

NEW DELHI: In what could improve availability of sugar in the market immediately and bring down prices, around 3-3.5 lakh tonnes available with Indian sugar refiners, who import raw sugar duty-free and export them after processing, is likely to come into the domestic market following a recent govt decision.Last week, the government allowed duty-free import of 10 lakh tonnes of raw sugar and also allowed the processors to sell some refined sugar, which was meant for exports only, in the domestic market. Officials and industry insiders said that at least 3 lakh tonnes of processed sugar could come into the market quickly, which will help lift market sentiments. The subsequent import of 10 lakh tonnes of raw sugar will help tide over any supply issue.Meanwhile, the ex-mill price of sugar has gone down by 20% in the past 10 days. Industry sources and officials said the ex-mill price in Kolhapur fell to Rs 48 per kg on Wednesday and in Uttar Pradesh it was around Rs 53 a kg. An official said ex-mill prices increasing from Rs 48 per kg to Rs 58-60 per kilo in just a few days showed that speculation and stocking were the main reasons behind the price spike, and there had been no shortage.Deepak Ballani, director general of ISMA, the country’s top sugar industry body, said that govt measures to rationalise sugar prices have started showing results. “Over the last few days, ex-mill sugar prices have declined by nearly 20%, and we expect this reduction to be reflected in retail prices very soon. There is adequate availability of sugar in the country, and consumers will get the commodity at reasonable prices during the forthcoming festive season,” he added.On Wednesday, the average retail price of sugar was Rs 65 a kg. Officials said the impact of fall in ex-mill prices will be felt in the retail market in the next few days.Get the latest Business News and Live updates. Download the TOI app.