India is considering measures to bolster sugar supplies and rein in record prices, such as limited duty-free imports and curbs on the amount of stocks held by bulk traders, potentially allowing in overseas shipments for the first time in nearly a decade.
Imports by India, the world’s biggest sugar consumer, could support benchmark prices in London and New York, while helping New Delhi rein in domestic prices during the August to November festival season when demand rises.
“Since there has been a completely unwarranted increase in prices, we will have to take measures to check prices, and we are considering a whole host of measures and tools,” said a government source.
Measures being discussed include lowering the amount of stockholdings, allowing limited imports, cutting import duties and adjusting monthly sugar allocations for domestic sales by mills, he said.
Wholesale sugar prices in Kolhapur, a key trading hub in the western state of Maharashtra, have risen nearly a fifth since the start of August to a record 5,350 rupees ($56) per 100 kg.
&uuid=(email))