India expects Indonesia to ease its sugar import policy soon

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Mumbai, Ta. 15 January 2020, Wednesday

While Indonesia is benefiting from Indonesia's ban on palm oil, the Indian government is expecting Indonesia to ease its sugar import policy. India and Indonesia have been negotiating the matter for the past one year.

In the bilateral agreement that is currently under discussion, India will give priority to Indonesia's palm oil and Indonesia needs to ease its sugar policy so that it can be easier to export sugar from Indonesia to India, official sources said.

The debate started during the first term of the Modi government when Indonesia imposed more duty on palm oil than on palm oil.

In September 1, the Indian government increased the import duty on palm oil in Malaysia by 5 percent and Indonesia reduced the import duty on sugar by five percent. India's sugar exporters were paying $ 5 more per tonne than Australia's before.

However, because Indonesia has a strong stand on quality issues in terms of import of raw sugar, there is no way out of this issue between India and India. According to Indonesian regulations, the amount of raw sugar imported must be 1 or higher on the International Commission for Uniform Methods of Sugar Analysis Standards.

This amount of sugar produced by India's sugar mills is found to be between 3 and 5. Indonesia has in principle agreed to buy sugar with India's Measure 3. Indian sugar exporters have been waiting for Indonesia to relax its rules for the past one year, sources in the Indian Sugar Mills Association said.

India has imposed palm oil imports from Malaysia this week, which is likely to see an increase in imports from Indonesia.

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