According to the original notification issued August 20 allowing imports of 1 million tonnes of tariff rate quota (TRQ) of raw sugar, the importer had to process it into white/refined sugar and sell it in the domestic market by October 31 in any case.
The latest step permits importers to sell processed sugar in the domestic market within a period, not exceeding two months, from the date of filing of bill of entry.
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The government approved the measure after domestic ex-factory sugar prices reached a record more than ₹60 per kg.
Sugar millers however told the government that it is difficult to complete selling imported and processed sugar by October 31 as it takes around 40-45 days to import sugar after getting the requisite legal approvals.
“Although the government has allowed 1 million tonnes of import, we were hoping that only about 300,000 to 500,000 tonnes could get imported due to the short window to sell it in the domestic market,” said a sugar exporter from Maharashtra, requesting not to be named.
According to government estimates, India is expected to have a closing stock of 3.2-3.5 million tonnes of sugar on September 30, lower than the government target of more than 4 million tonnes to meet an expected surge in demand during the festive months of October and November.