India allows 1m tonnes of duty-free raw sugar imports

India approved duty-free imports of up to 1 million metric tonnes of raw sugar on Thursday to curb high prices ahead of the festive season.

The commerce ministry said imports would be free under a tariff-rate quota of 1 million metric tonnes and available until October 31.

The decision comes amid concern that local raw sugar supplies could be affected by a lower-than-average monsoon season driven by the El Nino weather pattern. Local media reported that concerns over a reduced sugar harvest have pushed prices to record highs.

India is one of the world's largest sugar producers, and domestic consumption usually rises between September and January as demand for sweets and confectionery increases during festivals.

India prohibited sugar exports in May to boost domestic supplies. That ban is in place until September 30.

El Nino is a natural climate variation that warms surface temperatures in the central and eastern equatorial Pacific Ocean and can change wind and rainfall patterns worldwide. Human-caused climate change can amplify its effects by making more energy and moisture available for extreme weather.