Home›Global Markets›Trade & Tariffs›India weighs cutting 100% sugar import duty to cool pr…

India weighs cutting 100% sugar import duty to cool prices

The proposal comes as India faces record-high sugar prices and a global supply strain tied to El Niño risks, with monsoon rainfall running about 13% below normal.

Reported · Written up by our desk · Trade & Tariffs

India’s central government is reportedly considering lowering or scrapping a 100% import duty on sugar to reduce domestic prices and expand supply ahead of the festive season, according to LiveMint Markets citing sources.

The report links the push to record-high sugar prices and concerns about tighter global availability, including worries that El Niño could disrupt harvests. It also points to India’s monsoon, with rainfall about 13% below normal, which affects sugarcane because crops depend on rainfall.

In Maharashtra, ex-mill sugar prices have reportedly reached around ₹46 per kilo, an all-time high, according to the Indian Sugar and Bio-energy Manufacturers Association. With consumption typically peaking from late August through January, officials are also reportedly weighing operational steps, including bringing forward sugarcane crushing by 10 to 15 days in Uttar Pradesh and Maharashtra to bolster supplies.

LiveMint Markets also said the government has imposed stockpile limits on traders to discourage hoarding and contain inflation risks, and that India generally does not import sugar for domestic consumption, with substantial imports last recorded in 2017-18.

Latest closeSugar $16.60 ▼1.3%

More like this

Sources