New Delhi, Aug 22 (KNN) With a view to reviving the cash starved sugar mills, the government has raised import duty on both raw and refined sugar to 25 per cent, a move which could lead to increase in sugar prices. Currently the import duty on sugar is 15 per cent.

According to the notification issued by the Central Board of Excise and Customs (CBEC), import duty has been raised to 25 per cent on raw sugar and refined or white sugar.

The higher duty will also be applicable to bulk consumers who import raw sugar, the government said, adding that this has been done in public interest.

India is the world's biggest consumer of sugar. Earlier this year, Food Minister Ram Vilas Paswan had said import duty could be raised to 40 per cent from 15 per cent if mills make clear farmers dues.

Sugar mills have been facing a cash crunch as domestic prices have dipped even below the cost of production, hitting their profits. (KNN/SD)