3 lakh tonnes of refined sugar to enter market
The Indian government has allowed the domestic sale of 3 lakh tonnes of refined sugar previously reserved for export to stabilize market prices. This measure, combined with duty-free imports, aims to curb speculation and ensure availability during the festive season.
Why it matters
Government intervention in commodity markets is a key tool for managing inflation and ensuring food security for the general population.
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 it after processing, is likely to come into the domestic market following a recent govt decision.Last week, govt had 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 export only, in the domestic market. Officials and industry insiders said at least 3 lakh tonnes of processed sugar could come into the market quickly. 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.
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