Responding to demands, govt scraps export duty on sugar
New Delhi, Mar 21 (KNN) Responding to the demands raised by the sugar industry, the government on Tuesday announced scrapping of export duty on raw and refined sugar to boost shipments.
The move comes at a time when the country is all set to produce record 29.5 million tonnes (MT) of the sweetener in the present marketing session. Earlier, the export duty on sugar stood at 20%.
It has been decided to reduce export duty on raw sugar, white or refined sugar from 20% to nil, a notification informed.
With domestic prices falling below cost of production, various associations in the sector including Indian Sugar Mills Association (ISMA) and National Federation of Cooperative Sugar Factories (NFCSF) raised demands to scrap export duty in order to liquidate surplus domestic stock.
Earlier, Dilip Walse Patil President of the National Federation of Cooperative Sugar Factories Limited and NCP MLA in a press interview said that the increase in unsold stock is to have a big negative impact on the sugarcane prices as farmers have no option other than selling them at Rs 6 to Rs 7 less than production cost.
Also, In this direction cooperative sugar mill lobby had been petitioning all the concerned authorities including Chief Minister Devendra Fadnavis and Prime Minister Narendra Modi for immediate withdrawal of export duty on sugar. (With Inputs from a media report) (KNN/DA)