India to extend deadline for duty-free sugar import to May 2010
India, the world’s largest sugar consumer, has decided to extend the deadline for duty-free sugar import from November 2009 to May or June 2010.
Food and agriculture minister Sharad Pawar said that for the second consecutive year, the demands had surpassed the availability of sugar.
As a result, the government had permitted sugar purchase at zero duty even after the present deadline of November 2009. He added that the period of extension is not yet fixed but it might be till May or June 2010.
During the last one year, sugar prices have almost doubled to Rs 36 per kg. The government’s move to extend the deadline is an attempt to control the rising prices.
Alka Sirohi, Food Secretary of India, said that the new marketing season would begin on October 1, and India had estimated to import about 4 million tonnes of raw and white sugar.
Mr. Pawar said that the prices might fall down after the festive season as there would be a decrease in demand, and also the imported sugar would reach the market.