Indian sugar producers hit by imports
INDIA plans further restrictions on sugar imports in the face of a home market weakened by over-supply, according to a report in the Financial Times.
The Indian federal government has already raised the customs duty on sugar from 5% to 27.5%.
There is also a duty of Rs850 (£12.30) a tonne to offset excise duty on locally-produced sugar.
The Indian Sugar Mills Association is expecting duties to rise to 40%.
Imported sugar – mainly from China, Brazil and Pakistan – has a cost advantage of more than Rs1200 (£17.40) a tonne over the local product.
India is forecast to produce at least 15.2 million tonnes of sugar in the current year against 12.86m tonnes in 1997-98.
The country opened this season with stocks of 5.4m tonnes and imports are expected to total 2.5m tonnes.
End of season stocks are forecast to meet domestic demand until the middle of next year after providing for domestic consumption of 14m tonnes.
- Financial Times 20/04/99 page 32