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Sugar shipments from Brazil likely to reach India before Oct 15

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Sugar shipments from Brazil are likely to reach Indian shores before October 15 as the country sets the ball rolling on duty-free import of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) until October 31.This marks India’s first major sugar import window in nearly a decade, aimed at boosting local availability and cooling soaring domestic prices ahead of peak festive demand.The National Federation of Cooperative Sugar Factories (NFCSF) said Brazil was the only realistic source of imports for now, with Thailand, the other traditional supplier, ruled out as it was grappling with its own shortfall.The transit time from Brazil to Indian ports is typically 40-45 days, and cargo needs additional time to move from port to mill once it lands, it said.The Centre recently allowed duty-free import of up to 1 million tonnes of raw sugar to check prices, which rose sharply by 24 per cent to Rs 56-60 per kg in just one month in both retail and wholesale markets across India due to tight supplies.Port-based states — Maharashtra, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh — are likely to receive the imported raw sugar faster than landlocked northern states, though the latter have historically also received such cargo via the same ports, moved onward by road or rail, the NFCSF said.NFCSF president Prakash Naiknavare said India exported only 8 lakh tonnes of sugar against a permitted quota of 20 lakh tonnes due to unfavourable international price parity. He added that even without restrictions, exports were unlikely to have exceeded 10 lakh tonnes.On May 13, the government had banned sugar exports till September 30 to boost domestic availability and contain price rise.In a departure from the usual pattern, international raw sugar prices had dipped rather than rallied after India’s import announcement.Union Consumer Affairs Minister Pralhad Joshi said the fall in sugar output was linked to the unexpected outbreak of red rot disease and the impact of El Niño conditions, which have affected agricultural production in India and globally.“Because of the red rot disease, which was very unexpected, and El Nino, overall agricultural production, including sugar, has come down not only in India but globally…we are very concerned about it, which is why we have immediately taken several measures,” he said.He also said India’s annual sugar requirement is around 280 lakh tonnes, while the country currently has a surplus of more than 20-25 lakh tonnes, but imports were being pursued as a temporary measure ahead of the festival season.The government has also intensified action against stockpiling and speculative trading following criticism from Union Food Secretary Sanjeev Chopra, who had raised concerns over hoarding.

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