India is saddled with the surplus sugar stocks and looking for a new market to liquidate the domestic glut. Now, according to a finance ministry regulation published on June 27, Indonesia changes import tax for Indian raw sugar to 5 per cent from previously a nominal duty of 550 rupiah (Rs 2.69 ) per kg.
According to the reports, earlier Indonesia has asked India to cut its tariff on refined palm oil to 45 per cent, matching the levy faced by rival producer Malaysia, and offered market access for Indian sugar in exchange.
Currently, Indonesia, the world’s second-largest sugar importer, imports raw sugar from Thailand, Australia, and Brazil.
It is presumed that Indonesia being closer in the distance to India, is expected to reduce cost of imports for the country.
Sugar mills in India have been facing issues with depressing sugar prices, surplus stocks, and piling cane arrears. Boost in export will help to reduce the surplus up to some extent.
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