Govt may allow STC to import refined sugar at zero duty

New Delhi (PTI): The government is considering allowing State Trading Corporation to import refined sugar at zero duty and may extend similar concession to all players if prices of the sweetener in retail markets remain high.

"If the prices remain above Rs 25 a kg in the retail market, the government may allow all to import refined sugar at zero duty," a senior government official said.

However, it is difficult to suggest if traders would be willing to import refined sugar even if the duty is brought down to the zero level, given the current price situation in the domestic market, he added.

At present, refined sugar import is taxed at 60 per cent.

Though the official said duty-free refined sugar import could be granted to all if the situation so warrants, buzz in the industry suggests that the STC may be allowed first.

"The government is considering to allow STC for the import of refined sugar at zero duty," an industry official said on the condition of anonymity, adding that if the state-owned firm is allowed, good quantity of refined sugar may come to India as domestic prices are ruling above the global level.

The centre is expecting sugar prices to come down after it decided late last month to impose limit on stocks a trader can hold as well as on the duration of keeping such stocks, the government official said.

source: The Hindu