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Government raises import duty on sugar to 15 pc: sources

Reuters
Jul 05, 2013 at 10:01am IST

Mumbai: The government has decided to raise the import duty on the sweetener to 15 per cent from 10 per cent currently, to discourage overseas buying amid a drop in local prices due to ample supplies, sources said on Friday.

"In Thursday's meeting, Food, Finance and Agriculture Ministries have agreed to increase duty to 15 per cent," said a senior government official, who declined to be named.

"Informally, it has been agreed upon to increase the import duty on sugar, but a formal order in this regard has to come from the Finance Ministry," said another official at the Food Ministry.

Government raises import duty on sugar to 15 pc: sources

The amount sugar mills owe to farmers is Rs 90 billion, as mills are struggling due to a drop in sugar prices.

The amount sugar mills owe to farmers has risen to Rs 90 billion, as mills are struggling due to a drop in local sugar prices.

Mills have been importing sugar despite a surplus local production, as the sweetener is cheaper in the world market due to a bumper sugar output in Brazil.

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