India hopes to bring down sugar prices, may open up import
Wednesday, 22 April 2009
NEW DELHI, Apr 21 (PTI): The Indian government expects sugar prices to come down by at least Rs 2-3 a kg in the next 10 days and said if prices do not fall it will open up import of refined sugar to increase the domestic availability but ruled out immediate ban on futures trading.
"We have taken various measures to increase the sugar availability. The prices are expected to soften by at least Rs 2- 3 a kg in the next 10 days," said N Sanyal, Joint Secretary in the Food Ministry, briefing the media on high prices. He added that the "situation will normalise after June when demand starts declining".
According to official data, retail prices in 17 cities rose to Rs 21-28 a kg as on April 17 from Rs 17.75- 23 as on October 1,2008. Sanyal said prices should be below Rs 25 a kg.
He said the Centre may allow private trade to import refined sugar at zero duty, which is at present restricted to public sector trading firms. "If the situation demands, we can open up white sugar imports to traders."
The Finance Ministry today notified Cabinet decision to allow MMTC, PEC, STC and Nafed to import upto 10 lt of refined sugar at zero duty by August 1. It also notified raw sugar import at zero duty without export obligation till Aug 1.
"We have taken various measures to increase the sugar availability. The prices are expected to soften by at least Rs 2- 3 a kg in the next 10 days," said N Sanyal, Joint Secretary in the Food Ministry, briefing the media on high prices. He added that the "situation will normalise after June when demand starts declining".
According to official data, retail prices in 17 cities rose to Rs 21-28 a kg as on April 17 from Rs 17.75- 23 as on October 1,2008. Sanyal said prices should be below Rs 25 a kg.
He said the Centre may allow private trade to import refined sugar at zero duty, which is at present restricted to public sector trading firms. "If the situation demands, we can open up white sugar imports to traders."
The Finance Ministry today notified Cabinet decision to allow MMTC, PEC, STC and Nafed to import upto 10 lt of refined sugar at zero duty by August 1. It also notified raw sugar import at zero duty without export obligation till Aug 1.