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Govt decided a to hike import duty on sugar to 60%

import dutyOn sugar, to raise the import duty from the present 40% to 60% the centre is currently considering in order prevent the domestic prices from falling and to control the cheap imports.

Further, if the domestic prices of sugar fall, to pay the sugarcane farmers they will impact the sugar mill owners’ ability.

In April, 5 lakh tonnes of raw sugar import had sanctioned by the government to boost the local supply at zero duty. In the 2016-17 marketing year, the sugar output has been anticipated to be lower.

The government is monitoring the international prices, report made by a senior officer from Food Ministry. Even at higher import duties, few traders want to import as the prices are falling internationally. To hiking the import duty, the ministry is also looking. From hitting on the domestic prices, the global prices fall any further and the duty will be hiked to prevent the cheap imports. Currently, throughout the country, the local price is Rs 40-50 per kg of sugar.

In the 2016-17 seasons ending October, the domestic output at little over 21 million tonnes While the annual sugar demand is about 24-24.5 million tonnes and there is a moderate of previous year’s stock.

Under an import duty of 40%, from Brazil 3 lakh additional tonne of sugar being imported, said by the officials in some reports. For re-export and not for domestic use, the refiners are importing sugar. if bought for domestic use, after the contract is signed, the sugar will arrive only 45 days and the taxes that are ruling that time have to be given

To keep maintained the gap between international and local prices, the government has urged the industry so that traders do not go for imports. By this, the local sugar price will be under pressure with any more imports.

Currently, 13 cents per pound is the prices of raw sugar in the Global market, as per trade data, four months back it was 16-17 cents per pound. Due to excess supply, globally the rates are down. The main reason for falling prices is India is not importing the commodity and Brazil is not using sugar cane for ethanol as India is the largest consumer.

Presently in India, the wholesale price of sugar is above Rs 32 and it is possible for companies as there is an outskirt to pay the farmers