Bowing to pressure from the domestic sugar industry, the Centre on Monday hiked the import duty on sugar from 40 per cent to 50 per cent, to check cheap imports.

The Finance Ministry issued a fresh notification raising the import duty from the 40 per cent rate announced on June 30 to 50 per cent.

“We are very happy at the Government’s decision as the domestic sugar industry will benefit,” said Abinash Verma, Director General of the Indian Sugar Mills Association. “With global prices moving up slightly and import duty at 50 per cent, we do not expect much import to take place.”

Cheaper imports have been adversely affecting sugar mills. Verma said retail prices have stabilised in the last six months. But, with the Centre increasing the fair and remunerative price of sugarcane by about 11 per cent to ₹255 a quintal for the season beginning October, sugar mills have been finding it difficult.

To be viable, the ex-mill gate price of sugar should be ₹36-37 per kg, he said, adding that this would help stabilise the retail price at ₹43 per kg.

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