Govt mulling import tax on sugar imports to protect domestic industry
Updated: Jun 06, 2014 02:51:37pm
New Delhi, Jun 6 (KNN) The government is examining providing additional interest-free loans of Rs 4,400 crore to the sugar mills for clearing dues to the cane farmers. It is also looking at hiking sugar import duty from 15 per cent to 40 per cent to curb cheap imports and increase ethanol blending in petrol to 10 per cent in an effort to improve the liquidity of mills.
"The main concern raised was how to clear Rs 11,000 crore sugarcane dues to farmers at the earliest. A suggestion has been made to extend loans given equivalent to the excise duty paid by the mills in the past three years to five years," Food Minister Ram Vilas Paswan told reporters yesterday.
"Each minister has given suggestions. We have not yet taken any decision...We will discuss among ministries and with the Prime Minister what we can do best for the benefit of both farmers and mills. A cabinet note will be prepared accordingly," he added.
Paswan had also said that the government is examining providing additional interest-free loans of Rs 4,400 crore to cash-strapped sugar mills to clear dues to cane farmers, reports media.
In December, 2013, the government had approved Rs 6,600 crore interest-free loans to the sugar industry to clear the sugarcane arrears. It decided to give loans via banks equivalent to the excise duty paid by the mills in the past three years.
India is the world's second-biggest producer of sugar after Brazil. It imposes a 15 per cent tax on sugar imports. (KNN Bureau)
"The main concern raised was how to clear Rs 11,000 crore sugarcane dues to farmers at the earliest. A suggestion has been made to extend loans given equivalent to the excise duty paid by the mills in the past three years to five years," Food Minister Ram Vilas Paswan told reporters yesterday.
"Each minister has given suggestions. We have not yet taken any decision...We will discuss among ministries and with the Prime Minister what we can do best for the benefit of both farmers and mills. A cabinet note will be prepared accordingly," he added.
Paswan had also said that the government is examining providing additional interest-free loans of Rs 4,400 crore to cash-strapped sugar mills to clear dues to cane farmers, reports media.
In December, 2013, the government had approved Rs 6,600 crore interest-free loans to the sugar industry to clear the sugarcane arrears. It decided to give loans via banks equivalent to the excise duty paid by the mills in the past three years.
India is the world's second-biggest producer of sugar after Brazil. It imposes a 15 per cent tax on sugar imports. (KNN Bureau)
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