Sindh govt’s subsidy offer prompts India’s sugar move.

A recent announcement by the Sindh government to offer a subsidy for sugar exports — on top of another dole-out by the federal government of Pakistan to cut a massive inventory, was the trigger for India to double its import duty on the sweetener to 100% and stop potential dumping from the neighbour. An analysis of the viability of supplies from the neighbour shows a 70% customs duty is required to stop likely imports from Pakistan via Mumbai now. However, to discourage imports through the Wagah border, the duty needs to be as high as 100% (See the chart). Excluding the additional subsidy by the Sindh government, a 50% customs duty was just about enough to check imports from Pakistan even through the Wagah border.