Government allows sugar export on re-import basis.

[ankursinghal]

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In a move that will help sugar companies, the government has agreed for export of around 2-3 lakh tonne of the commodity that is presently stuck at various ports. However, sugar companies will have to import an equal amount of the sweetener within the next four months.

The reason behind large amount of sugar stuck at the ports is the sharp change in sugar prices and outlook over last two quarters. At the start of the current calendar year, sugar prices in India as well as international markets were ruling at record high levels. However, as the news of higher-than-expected production in India started coming into markets, sugar prices began to crash heavily.

Many sugar companies had imported duty-free raw sugar expecting higher prices and lower supplies domestically. However, with substantial upside surprise in local production and crashing of prices across the board, it became unviable to process the imported sugar.

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