India has imposed a 10%import duty on raw sugar,in response to the surplus production in the country.
This move comes after the zero duty regime expired on 30 June.The decision is not expected to have any impact demand-supply in the local market as the mills are having a surplus production and are exporting sugar.
The food ministry,however,did not impose a higher custom duty on sugar as this would affect the traders who are willing to import sugar during shortages.
Sugar production is forecast to reach 26 million tons in 2011-12 marketing year(October-September),compared to 22 million tons of annual domestic consumption in 2010-11 year.Currently,nearly 3 million tons of exports have already been approved.India is the world's leading sugar producer after Brazil.
