The government on Tuesday allowed <a href="https://www.mid-day.com/business/business-news/article/centre-permits-free-imports-of-10-lakh-tonnes-raw-sugar-until-october-31-to-curb-sugar-prices-23645850" target="_blank" rel="none noopener">importers of raw sugar</a> 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, according to news agency IANS.
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.
<h2>Government eases norms for importers</h2>
The revised provision removes the 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.
The government had on August 20 allowed duty-free imports of 10 lakh tonnes of raw sugar under the tariff-rate quota (TRQ) scheme until October 31 to curb the rising sugar prices ahead of the festive season.
"The import policy for raw sugar is amended to allow 10 lakh MT of duty-free imports under Tariff Rate Quota (TRQ) till October 31, 2026," the Directorate General of Foreign Trade had said in the 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, according to IANS.
This includes refined sugar already produced as well as sugar to be produced from the imported raw sugar. This conversion is subject to payment of GST exempted at the time of import and other prescribed conditions.
<h2>The government's measures to contain sugar prices</h2>
The government has been trying to curb the sugar prices that have been soaring the past few months. Through nil duty on imports, it aims to enhance the supply availability of the sweetener to ease the inflationary price pressure, especially during the festive season. Earlier, a customs duty of 100 per cent was being levied on raw sugar imports.
The <a href="https://www.mid-day.com/business/business-news/article/govt-incorrect-to-link-sugar-price-hike-to-diversion-of-sugar-for-ethanol-production-23646041" target="_blank" rel="none noopener">Food Secretary Sanjeev Chopra recently blamed the industry for hiking the sugar prices calling it "unjustified"</a>.
The all-India average retail price has shot up to Rs 56 per kg from Rs 48 per kg on July 20, and the ex-mill sugar prices have shot up to Rs 62 per kg from Rs 47-48 per kg in just about 7-10 days, Chopra had said.
Chopra had said that despite adequate stock, the government has allowed import of raw sugar as a precautionary measure and expects the government initiatives to help ease the retail prices over the next few days.&nbsp;
Sugar refineries that have imported raw sugar under the advance authorisation scheme have been allowed to transfer their stocks for domestic sales, which would help in boosting sugar availability by 3-4 lakh tonnes immediately, the secretary had said.
India allowed duty-free imports of 10 lakh tonnes of raw sugar under tariff rate quota till October 31, just after <a href="https://www.mid-day.com/business/business-news/article/centre-imposes-stockholding-limit-on-bulk-consumers-to-contain-sugar-prices-23645740" target="_blank" rel="none noopener">imposing a stockholding limit on bulk consumers</a> who use more than 10 tonnes of sugar a month, capping their stock at 15 days' consumption, from September 1 to November 30.&nbsp;
<h2>Industry view on sugar prices</h2>
Industry leaders and experts are of the view that sugar prices are likely to ease 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, according to ISMA Director General Deepak Ballani.
He stated sufficient sugar supply would remain available until the end of the current season on September 30 and expects the market situation to improve soon.
(With inputs from IANS)

Earlier, 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

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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

Government eases raw sugar import norms, allows 2 months for processing and sale

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