New Delhi: The government has extended the time period for processing and domestic sale of imported raw sugar to two months from the date of its entry, in response to the concerns raised by the industry over shipping delays. While permitting the import of 1 million tonnes of raw sugar to boost local supplies and rein in prices, the government had earlier asked importers to process the raw sugar and sell it in the domestic market by October 31.
However, the industry, in a recent meeting, told the ministries concerned that this timeline was not feasible, citing port congestion in Brazil and a 40-day shipment period for cargo to reach India after quantity approval. Taking this into account, the Directorate General of Foreign Trade (DGFT) August 24 issued a corrigendum to its August 20 notification, extending the timeline for processing and sale of imported raw sugar. “The raw sugar imported under the TRQ (Tariff-Rate Quota) shall be processed in to white/refined sugar within a reasonable period after im port, provided that the importer shall convert the raw sugar into white/refined sugar and sell the same in the domestic market within a period not exceeding two months from the date of filing of bill of entry,” the corrigendum stated. National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Prakash Naiknavare welcomed the move, calling it “a positive development” that would “encourage more mills to apply for import.” Mills have already begun applying online for raw sugar import through a DGFT portal.
The DGFT may take 2-3 days to process applications and allocate quantities, and mills will then sign contracts by mid-September; subject to port congestion, shipments are expected to reach Indian shores by the third week of October. Sugar imports have been allowed to boost domestic supply and check retail prices, which stood at nearly Rs 64 per kg Tuesday. Retail prices have remained firm even as ex-mill rates have eased in recent days following the government’s decision to permit imports and other measures to curb hoarding and speculation.
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