Govt extends deadline for sugar export obligation
The government on Tuesday extended by 15 months a deadline for an obligation to export refined sugar against prior raw sugar imports until the end of March 2011, a government statement said.
The move is meant to increase local supplies and rein in prices of the sweetener which rose more than 50 percent in November from a year ago due to tight supplies.
"This will improve market sentiment over local supplies," said an official of a sugar firm who did not wish to be named.
Indian firms have had to export an equivalent quantity of white or processed sugar against their import of raw sugar until December 31, 2009.
On Tuesday, the government said the extension of the deadline is applicable to mills that had imported raw sugar between Sep. 21, 2004 and Apr. 15, 2008.
Importers can also gain exemption from their export obligation by paying the customs duty applicable during the period of the raw sugar imports.