New Delhi: The government has allowed traders to import refined sugar at zero duty without restrictions on quantity till March 2010 to cater for domestic demand and rein in rising prices.
The decision came a fortnight after the Centre extended the deadline for importing duty-free white sugar till March 31 next year from November 2009.
Earlier in April, the government had allowed PSUs to import duty-free refined sugar but with a cap of 1 million tonne which is almost exhausted. Later, private traders were also allowed to import the commodity duty-free.
In a fresh notification dated November 27, the Central Board of Excise and Customs has permitted traders to import refined sugar till the fiscal-end without quantitative limit.
Sugar prices in the last one year have surged to Rs 38 a kg on concerns of shortfall in production. India , the largest sweetener consumer in the world, produced about 15 million tonne in the 2008-09 season and is projected to produce about 16 million tonne of sugar this season, while it needs about 23 million tonne for its annual consumption.
The country has already imported close to 1 million tonne of white sugar and 5 million tonne of raw sugar since February to tide over a domestic shortfall. The government had this month also allowed duty-free import of raw sugar till January 1, 2011, extending its deadline from March 31, 2010.
Source : .FinancialExpress