Cloudy
7°CSat :Showers. High: 10 Low: 3

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

rupee-3_660_103114092210

India positions 156th in assessment installment, says World Bank report

October-31-2014
India is one of the most noticeably bad places for paying expenses and has been positioned 156th out of 189 countries by
arun-jaitley_660_103014074323

Don’t ignore local black money: Arun Jaitley

October-31-2014
NEW DELHI: As a feature of his technique to meet the expense accumulation focus for the current monetary year, fund priest Arun
Gautam-Upen-Cover

Bigg Boss 8 Breaking: Upen or Gautam Who Wins Task To Be Captain

October-30-2014
According to data accessible to sources there will be an errand that chooses who will be the new commander in the Bigg
1414586257-1625

Shweta Basu Prasad discharged from rescue home

October-30-2014
National grant winning performer Shweta Basu Prasad, who was captured few weeks back by Hyderabad police on charges of prostitution, has been
A person holds a magnifying glass over a computer screen displaying Twitter logos

IBM, Twitter to accomplice on business data analyst

October-30-2014
International Business Machines Corp (Ibm.n) on Wednesday published an organization with Twitter (Twtr.n) to help shape business choices utilizing information gathered from
smriti-irani21

Saffron schoolbooks? Smriti Irani meets RSS leaders to examine training changes

October-30-2014
Human Resources Development Minister Smriti Irani apparently met RSS pioneers today to examine instruction changes. The RSS pioneers talked about the Indian