Al Khaleej Sugar left out of India's new sugar import scheme

Local sugar manufacturers in India might be the only ones benefiting from India’s Government decision of turning down the proposal of relaxing norms for imported sugar.

The Government decided not to allow foreign players to import raw sugar and sell it in the domestic market after refining it.

Proposal made by Al Khaleej Sugar - To import raw sugar, refine it in India and sell it locally without the obligation to export the same quantity it was imported was rejected by the Foreign Investment Promotion Board.

The company defends the idea that the large volume involved would eventually force prices down, benefiting consumers in India. Al Khaleej Sugar, based in Dubai, is the largest refiner in the world.

The Board was not convinced by the argument.
"For now, we will put our plans for incorporating an Indian company on hold”, Al Khaleej said. Al Khaleej also decided that it will not challenge the decision but is not willing, “for now”, to invest under the regular norm, (grain-by-grain), whereby it would not be able to sell in the domestic market.

The government’s move is aimed at protecting the local sugar industry. Although current Indian norms allow 100% foreign direct investment (FDI) in sugar, it’s the technicalities that might keep foreign companies out.

SOURCE: foodbizdaily