India's Sugar Mills Likely to Use Only Half of Duty-Free Import Quota
· Business · Reuters, BBC News
India's sugar mills and refiners are expected to import only about half of the 1 million tonnes allowed under a recent duty-free quota, according to trade estimates cited by Reuters. Industry executives said a recent rally in global sugar prices and rising ocean freight costs have made overseas purchases unattractive for most buyers, even with zero duty. Domestic sugar prices have climbed roughly 30% in the past month as weather-related crop damage in key producing states tightened local supply and exposed the inflation risk the RBI had flagged. Mills are instead relying on stockpiles and government stock releases to bridge the supply gap, while the Food Ministry monitors the situation. The under-utilisation of the quota signals that the duty-free window has so far failed to soften domestic prices meaningfully.
Why it matters
Indian consumers face sustained sugar price pressure just as festive-season demand peaks, and the government's duty-free import tool has not delivered the expected price relief for households and sweet-makers. With domestic supply tight after weather damage, any further drop in output could push inflation higher and complicate the RBI's rate-cut path.
Read the original report — Reuters
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