Kolhapur: Stakeholders in sugar industry across Maharashtra have demanded to hike import duty from 40% to 60% for a level playing field in domestic market as prices in international market has come down and there is a potential chance of sugar being imported.
The Central government on April 5, 2017 took a decision to import 5 lakh tonne raw sugar that resulted in decline of domestic sugar prices. The delivery of raw sugar started arriving in India last month.
According to sugar experts, prices of sugar came down heavily in the international markets due to excessive production and devaluation of international currencies. The government's decision brought down the wholesale prices by Rs 100 to 150 in the domestic market.
Vijay Autade, state executive director of Chhatrapati Shahu Maharaj Cooperative Sugar factory, said, "Sugar prices in international market have heavily come down due to various factors. As of now Central government has levied 40% import duty on sugar, but prices of ready and raw sugar have already gone down. There is potential threat of another major slot of imports. Indian importers easily earn profits with existing import duties."
He added, "Therefore, our bodies at state and national level have demanded a hike in import duty from 40% to 60% for a level playing field. If we increase import duty, then prices of sugar would remain around Rs 3,500 per quintal at par with domestic producers."
P G Medhe, another sugar expert, said, "Sugar factories take loan against sugar stock to pay sugarcane bills. Therefore, stable sugar prices are requisite to repay bank loans. If government imports sugar as it is available at a lower cost, it would badly affect the domestic industry. Hence, the government should hike import duty in the interest of domestic sugar industry and farmers."
Another expert, on condition of anonymity, said, "The government is trying to keep prices of groceries at the lowest level. Hence, it would try to import sugar. But while appeasing the middle class, it should also think about local industry."
Source: timesofindia.indiatimes.com