The Rajasthan government has announced VAT exemption on imported sugar in the state till June 30, in a bid to control the spiralling sweetener prices.
"The decision to exempt four per cent VAT was taken by Chief Minister Ashok Gehlot yesterday, following which sugar price will decrease by Rs 1.6 to 1.8," an official said.
Sugar prices are ruling between Rs 41-43 a kg in the state.
"The government has exempted the tax in view of rising prices. After June, further decision will be taken accordingly after a review of situation," the official added.
The prices of the sweetener has doubled since January 2009 and currently hovering around Rs 45 a kg in the country on expected fall in sugar production this year.
India, the world's largest consumer of sugar, is estimated to produce nearly 16 million tonnes of sugar against the annual demand of 23 million tonnes. The gap of 7 lakh tonnes is being met through imports.