According to a notification by the Central Board of Excise and Customs, import duty has been raised to 25 per cent on raw sugar and refined or white sugar. The higher duty will also be applicable to bulk consumers who import raw sugar, the notification said.
After a meeting with both millers and farmers last week, food minister Ram Vilas Paswan had said that the import duty on sugar could be raised to protect mills if they clear farmers’ cane arrears.
‘We are ready to raise the import tax, allow ethanol blending to 10 per cent, give some soft loans and export incentives for raw sugar but mills need to assure us that they will clear farmers’ dues,’ Paswan told reporters.
Currently, domestic sugar prices are ruling in the range of Rs 35-40 per kg in view of surplus stocks, according to the consumer affairs ministry. Prices fell below the cost of production in some states with the country producing surplus sugar for the fourth consecutive year.
Mills in Uttar Pradesh are selling sugar at Rs 30.50 per kg, while the cost of production remains at Rs 37 per kg. In June, Paswan had said import duty could be raised to 40 per cent from 15 per cent.
‘We welcome the decision. At current global prices and rupee-dollar exchange rate, this increase in duty will check all sugar imports, which will certainly improve the domestic market sentiments,’ said Abinash Verma, director general of Indian Sugar Mills Association (ISMA).
After a meeting with both millers and farmers last week, food minister Ram Vilas Paswan had said that the import duty on sugar could be raised to protect mills if they clear farmers’ cane arrears.
‘We are ready to raise the import tax, allow ethanol blending to 10 per cent, give some soft loans and export incentives for raw sugar but mills need to assure us that they will clear farmers’ dues,’ Paswan told reporters.
Currently, domestic sugar prices are ruling in the range of Rs 35-40 per kg in view of surplus stocks, according to the consumer affairs ministry. Prices fell below the cost of production in some states with the country producing surplus sugar for the fourth consecutive year.
Mills in Uttar Pradesh are selling sugar at Rs 30.50 per kg, while the cost of production remains at Rs 37 per kg. In June, Paswan had said import duty could be raised to 40 per cent from 15 per cent.
‘We welcome the decision. At current global prices and rupee-dollar exchange rate, this increase in duty will check all sugar imports, which will certainly improve the domestic market sentiments,’ said Abinash Verma, director general of Indian Sugar Mills Association (ISMA).