Duty-free sugar imports till October

India, the world’s biggest consumer of sugar, may permit duty-free imports of the raw variety beyond August 1 to bolster supplies and control domestic prices.

Purchases may be allowed atleast until October, said a government official, on condition of anonymity.

Sugar producers are seeking an extension as a shortfall in cane supplies may persist in the new season starting October 1, Vinay Kumar, managing director of the National Federation of Cooperative Sugar Factories, said earlier.

The government, last month, allowed duty-free imports of raw sugar until August 1 to be processed and sold domestically to meet any shortage.

Still, purchases by the government may total less than the forecast of 3 million tonnes, as mills will run out of bagasse, a fuel used to generate power for their plants by the time the sugar arrives, according to Kumar.

The proposal will be considered by the next government after the results are announced on May 16, the official said.

Bagasse, the fibrous residue remaining after the cane is crushed, is used as a primary fuel by sugar mills.