Duty Free Imports not Likely to Bring down Sugar Prices
Duty free import of crude sugar till June is probably not going to cut down retail costs in the close term, says a report.
As of late government permitted obligation free import of crude sugar to the tune of 0.5 million ton till June 12.
“Duty free import is probably not going to have any noteworthy negative effect on the costs or benefit of sugar factories in the close term. While crude sugar imports are probably not going to contrarily affect household sugar costs, this may hose prospects of a further value rise,” Icra said in a report.
Be that as it may, import past June may prompt weight on stock position and may prompt a value revision in the pending sugar year, it included.
With the 0.5 mt of imported sugar, the end stock for the flow season is evaluated to be 4.5-5 mt, which would be adequate to meet the necessity of around two months of household utilization. This is still lower than the regularizing stock level of three months or around 6 mt and furthermore the earlier year’s end stock level of 7.7 mt.
At present, worldwide crude sugar costs are around 16 pennies/lb. At the present costs, add up to transformation cost into refined sugar is probably going to be at around Rs 32,000/mt. In this manner, the shippers are probably going to profit around Rs 4,000-5,000/mt at a residential cost of Rs 36,000-37,000/mt.
The imports will profit processes in the West and the South, which are at present confronting gainfulness weights because of low stick accessibility, the report noted.
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