Fair
-9°CThu :Partly Cloudy. High: -3 Low: -15

Import duty on sugar raised to 15%

Import duty on sugar raised to 15%

New Delhi: The government on Tuesday hiked import duty on sugar to 15 percent from 10 percent to help the industry clear Rs 9,000 crore cane arrears to farmers– a move that would make the sweetener costlier for the common man.

In a notification issued by the Central Board of Excise and Customs (CBEC), the duty of both raw and white (refined) sugar have been raised to 15 percent.

The sugar imports have been putting pressure on domestic prices and have prevented millers from clearing cane arrears to farmers.

Currently, millers in Uttar Pradesh are selling sugar to wholesalers at rates lower than even the production cost, according to the industry experts.

The hike in duty is aimed at curbing import of sugar and improving the bearish sentiment in domestic market.

This would, however, lead to rise in sugar prices across the country.

Currently prices of sugar (loose) is ruling at Rs 40 per kg and packed sugar at Rs 50/kg in Delhi.

Finance Minister P Chidambaram, Agriculture Minister Sharad Pawar and Food Minister K V Thomas had a meeting on July 4 to review the import duty.

After the meeting Thomas had said there was an agreement to increase the duty to 15 per cent to help industry in clearing outstanding payments to sugarcane farmers, which have risen to Rs 9,000 crore from Rs 5,000 crore in the last one year.

Industry associations like ISMA and NFCSF have been demanding a hike in import duty to 30-40 per cent, saying the country is having surplus sugar production.

According to the Indian Sugar Mills Association (ISMA), the country has imported nearly 6,00,000 tonnes of raw sugar and another 1,00,000 tonnes of refined sugar from Pakistan so far this marketing year.

“The import duty of 15 percent may not be sufficient to stop imports completely,” ISMA Director General Abinash Verma said.

He said that market sentiments are dampened because of imports, leading to a fall in prices and deterring traders from stocking the sweetener.

Currently, ex-factory price of sugar in Uttar Pradesh and Maharashtra is ruling at Rs 31 and 28.50 per kg, respectively, as against the production cost of Rs 35 and Rs 31 per kg, respectively.

The country has sufficient stocks to meet the domestic demand. Production is estimated to be at 24.5 million tonnes in 2012-13 marketing year (October-September), against the annual demand of 22-23 million tonnes.

 

Top Stories

apple_iPhone_6_triple

Apple expands iPhone costs in India

March-05-2015
NEW DELHI: About a week post the union plan, Apple has expanded costs of all its cell phones in India by up
630_11

Home Ministry Sends Nirbhaya Documentary Ban Order to BBC

March-05-2015
New Delhi: The Home Ministry, sources said, has sent a duplicate of the court request disallowing the broadcast of the narrative “India’s
pmmodi-ss-20-02-15

Modi hammers resistance for blocking section of Land Bill in RS

March-05-2015
Affirming that the area bill is not hostile to rancher, Prime Minister Narendra Modi today scrutinized the restriction for making obstacles in
IN03_RAJNATH_1981452f

Strict Action against those exasperating collective amicability, says Rajnath Singh

March-04-2015
Strict move will be made against the individuals who aggravate collective amicability, government declared in Rajya Sabha on Wednesday while expressing that
1425454837antibiotics

India lessens costs of 509 crucial medications

March-04-2015
New Delhi: National Pharmaceutical Pricing Authority (NPPA) has settled the max cost of 509 vital medications, which prompted a drop in costs
Yogendra-Ashish-Arvind--PTI

Kejriwal Vs Yogendra Yadav: Know ‘actual reasons’ the reason knives are out in AAP’s session of thrones

March-04-2015
knives are out in Arvind Kejriwal drove Aaam Aadmi Party which as of late came to power in Delhi in the wake