Govt planning to impose 25% duty in sugar exports

New Delhi, June 10 (KNN) Government is planning to slap 25 per cent duty on sugar exports in order to curb the domestic price rise of sugar.

The move comes after rise in international prices of sugar.

Union Minister Ram Vilas Paswan today said, “To keep the export of sugar in control, it is proposed to levy 25 per cent custom duty on export of sugar."

Reacting to this, Sanjay Banerjee, Head- Media Communications, Indian Sugar Mills Association (ISMA) told KNN, “We know that next year production is going to be low. Now because of heavy torrential rain in Brazil, sugar export is tough, so suddenly the international prices have gone up. Government is just trying to ensure that there is a sufficient sugar in the domestic market, so the prices don’t run high.”

Government has to be cautious so that the domestic prices don’t increase and there is no need to import sugar, he said.

“20-25 per cent duty would definitely check export of sugar,” he said.

As of now India has sufficient stock of sugar. We don’t need to import sugar, Banerjee added.

Sugar production in India, the world's second largest producer is estimated to be about 25 million tonnes in 2015-16, as against 28.3 MT last year.

Heavy torrential rains have lashed Brazil’s main sugar exporting terminals for more than a week now. A large volume of sugar is stuck there impacting the prices adversely. (KNN Bureau)