1 week ago

Sugar Stocks Fall As Government Eases Raw Sugar Import Rules

Sugar company shares fell after the government made raw sugar imports more flexible.

The shares had risen strongly earlier in August.

Importers can now take two months to process imported raw sugar after filing their import document.

The government also allowed some existing import permissions to be changed into the duty-free quota system.

Sugar prices have risen sharply ahead of the festive season.

Officials cited lower production, weather damage, global supply concerns and possible hoarding as reasons.

The government said the shift of sugar toward ethanol was not the main cause.

Sugar inventories are below the government’s preferred level.

The government will reduce how much sugar large buyers can keep in stock and will monitor sales data.

Key facts

Stocks affected: Balrampur Chini Mills, Bajaj Hindusthan Sugar and Shree Renuka Sugar fell as much as 3.5%.
August stock performance: Sugar-sector shares had gained 20-30% earlier in August.
Sugar price increase: Prices rose from Rs 48.18 per kg on July 20 to Rs 63.05 per kg on August 24.
Import quota: Up to 1 million tonnes may be imported under the duty-free tariff-rate quota.
Processing period: Importers now have two months from the date the Bill of Entry is filed to process and sell the sugar domestically.
Inventory estimate: Domestic inventories are estimated at 3.5-3.9 million tonnes, below the 6-million-tonne normative buffer.
Bulk stock limit: The stockholding limit for bulk consumers will be reduced to 15 days of consumption from September 1.

freepressjournal.in · 1 week ago