Sugar import duty hiked

August 23, 2014 09:41
Sugar import duty hiked

The government on Friday hiked sugar import duty from 15 per cent to 25 per cent and this would lead to increase in rate of sugar by Rs. 4 to Rs. 5 per kg. This decision was taken to to support local mills struggling to make cane payments, added the government sources. This hike is also applicable to bulk consumers who import raw sugar.

Food minister Ram Vilas Paswan suggested for an increase to 40 per cent from 15 per cent but as the Finance Ministry has hiked the duty marginally, the hike was little more marginal to give some relief to the domestic millers.

Currently, domestic sugar prices range from Rs 34 - 40 per kg as per the data of Consumer Affairs Ministry. However, Sugar mills are facing severe financial problems as domestic prices have slipped below the cost of production, sacrificing the profits. Indian Sugar Mills Association [ISMA] has welcomed this decision of government to hike the import duty.

(AW: Vamshi)

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