The Centre has extended the deadline for sugar mills and refiners to surrender unused raw sugar import quotas till September 30, giving them more time to decide whether to go ahead with imports as domestic sugar prices have fallen and global prices have risen.
The decision comes less than a month after the government allowed duty-free imports of 1 million tonnes of raw sugar under a special quota to increase supplies and keep prices under control ahead of the festive season.
But the cost of importing sugar has changed since the government announced the imports. Domestic prices have fallen, while global prices have risen. This means imported sugar is now more expensive than sugar available in India.
She estimated that raw sugar imported from Brazil would cost around ₹ 44 a kg after reaching India. After refining and adding GST, the selling cost would at least come to around ₹ 52-53 a kg, making imports unattractive as domestic sugar can be bought for less. Ex-mill prices of sugar have fallen down to ₹ 45 per kg from their highs of over ₹ 65 per kg in mid-August.
“With significant correction in domestic sugar prices and with an increase in global sugar prices, there is no parity to import now,” a sugar analyst, who did not want to be named, said.
