High sugar productivity might mean lower prices, Govt considering steps to protect industry

New Delhi, July 7 (KNN) The projection of sugar output for this year is expected to rise up to 25 to 30 per cent once the season starts in October. An increased production this year after a low output in the previous year may hit the sugar industry’s balance sheets hard, for which the government is considering taking protective steps.

According to the estimates of the industry the output could be around 25-25.5 million tonnes which is 25 per cent more than the previous output of 20.3 million tonnes.

Considering the high production after a year out of low output, the industry might face competition with a fall in open market prices.

Taking stock of the fear, the central government is planning to take a number of steps to protect the industry. The steps include increasing the import duty up to 20 per cent higher from the present 40 per cent. The government expects that this will restrict the import to an estimate of 500,000 tones.

Also higher ethanol price for the supply to Oil Marketing Companies is under consideration.  Likewise the government is also considering revising the Goods and Services tax (GST) tax rate on molasses and ethanol.

Also the industry has appealed to the government to provide a relaxation in loan payments as higher produce would mean a lower price. The government hasn’t responded to the appeal so far. (KNN/ DA)