Govt studies hiking import duty sugar 60 percent
Waste Management Expo 2020 MAR 12&13 BIEC, Bengaluru, India

Govt studies hiking import duty on sugar to 60 percent

9:24 AM, 3rd July 2017
Govt studies hiking import duty on sugar to 60 percent
Lower sugar output estimated during the current 2016-17 marketing year. (File photo)

NEW DELHI, INDIA: The government of India is considering raising import duty on sugar to 60 percent from the current 40 percent to restrict cheap shipments and maintain domestic prices.

In view of lower sugar output estimated during the current 2016-17 marketing year, the government had in April allowed import of 5 lakh tonnes of raw sugar at zero duty to boost domestic supply.

"We are monitoring global price movement closely. Prices in the international market are falling and some traders are keen to import even at high customs duty. So, we are considering raising import duty," a senior Food Ministry official told PTI.

Higher duty will be imposed the moment there is further fall in global sugar prices to ensure cheap imports do not put pressure on domestic retail prices, which at present are ruling steady at Rs 40-50 per kg across the country.

Already, 5 lakh tonnes of sugar has been contracted at zero duty and most of it has already arrived, the official said, adding imports were allowed to ensure there are enough supplies in the domestic market.

While the annual sugar demand is about 24-24.5 million tonnes, the domestic output in the 2016-17 season ending October is pegged at little over 21 million tonnes and there is a cushion of previous years stock.

Asked about more imports being undertaken at 40 percent customs duty, the official said there are some reports that additional 3 lakh tonne of sugar has been contracted from Brazil and is on the way.

However, the official said, "It is normally imported by refiners for re-export. I don’t think it is for domestic use. If contracted for domestic consumption, the shipments will only arrive in next 45 days and whatever taxes ruling then need to be paid."

Meanwhile, the government has asked the industry to maintain the gap between global and domestic prices so that traders are not incentivized to import. "If there are more supplies, then sugar prices will come under pressure," the official added.

Global prices of raw sugar have fallen to below 13 cents per pound at present when compared with 16-17 cents per pound four months back, as per trade data.

The weak trend in international rates is because of excess supplies on account of India’s policy of not importing the sweetener plus Brazil planning not to use a cane for ethanol, analysts said.

The traders who were holding sugar stocks anticipating India will import have started offloading, pulling down the prices, they added.

In India, the wholesale price of sugar is ruling above Rs 32, which is viable for mills, the official said, adding that there is a healthy margin for millers to make cane dues to growers.

© PTI News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Natural dye garden promotes a greener fashion supply chain

College of Human Ecology faculty and student efforts to advance sustainable approaches to textile and fashion design has led to the development of the ...

Read more
Lenzing plans new world-scale lyocell fibers plant in Thailand

PRACHINBURI, THAILAND: Lenzing AG said that it plans to build a state-of-the-art facility to produce lyocell fibres in Prachinburi, Thailand. The com ...

Read more
Lanxess combines rubber and colourant additive businesses

COLOGNE, GERMANY: Lanxess AG has revised its organisational structure, following its latest acquisition of US firm Chemtura. The two business lines ru ...

Read more
Sustainable biomedical textiles for the future

The textile and clothing industry has a long history in Switzerland. In order to remain competitive in the international market, the industry relies o ...

Read more
Effective stabilisation for state-of-the-art hybrid polymer sealants

Hybrid polymer, especially Silyl-modified polyether (known as STPE polymers) and silyl-modified polyurethanes (known as SPUR polymers) are the modern ...

Read more
DELO's new light-curing adhesive with excellent peel resistance

MUNICH, GERMANY: DELO, one of the world’s leading manufacturers of industrial adhesives for automotive, consumer and industrial electronics appl ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X