Raise import duty on raw sugar, Industry requests government.

NEW DELHI: The sugar industry is requesting the government to increase the import duty on raw sugar from 10% to 25% for safeguarding the domestic market from price distortion.

The retail price of sugar is around Rs 40 a kg and the industry fears that if imports are not restricted, prices may fall below rs 32, which is lower than the production cost, leading to a situation which may be beneficial for consumers but not for the local sugar industry grappling with lower price realisation and higher cane arrears.

"International sugar prices have fallen significantly in the last couple of months due to improved sugar production in Brazil and better production in countries like India, Thailand, China and Russia. Cheaper import of raw sugar will depress domestic sugar prices to unviable levels, putting pressure on the sugar industry," said an industry official who didn't wish to be named.

The prices of Brazilian raw sugar are ruling around $500 ( Rs 26,425) a tonne while domestic white sugar prices have climbed by around 25% in the past three months to $680 ( Rs 35,938) a tonne, making imports a profitable proposition. Indian mills are reported to have signed deals with Brazilian companies for imports which may lead a fall in prices in the ensuing festive season


Source : economictimes.indiatimes.com