News
07.05.2009
India relaxes rule on sale of imported sugar
India has exempted sugar mills from an obligation to sell 10 percent of their output processed from imported raws at low prices, a government notification showed on Wednesday. The decision was expected after mills had cut purchases of raws as the levy requirement at below cost was hurting them.
The government buys 10 percent of domestic output at nearly half the cost of production and sells the "levy sugar" at low rates to the poor, and decides how much of the remaining 90 percent can be sold in the market during a particular period. The levy obligation will not be applicable until August 1 for sugar processed from imported raws, according to the formal order, a copy of which is available with Reuters. "There were concerns in the trade that levy obligation may affect imports.
Therefore, we have issued the notification," said a senior government official, who could not be identified because he is not authorised to speak to the media. India, the world's biggest consumer of sugar and second-largest producer after Brazil, began raw imports in February following forecasts of a sharp drop in domestic output.
Reuters
