The government yesterday raised import duty on sugar and refined edible oils and reduced the levy on sugar mills to 30 per cent from 40 per cent of their production.
The import duty on sugar has been increased from 27.5 per cent (including surcharge) to 40 per cent with immediate effect. The countervailing duty of Rs 850 per tonne would continue unchanged.
Import duty on refined edible oils has been increased from 15 per cent (effectively 16.5 per cent with surcharge) to 25 per cent (27.5 per cent with surcharge).
More From This Section
There has been no change in the import duty of unrefined vegetable oils.
Consumer affairs and public distribution minister Shanta Kumar yesterday said these policy changes had been made in the interest of domestic producers of sugar and oilseeds. He ruled out any rise in prices as a result of higher import duty in view of easy market availability and comfortable stock position.
The sugar industry has been demanding curbs on imports and a level playing field between imported and indigenous sugar.The hike in import duty on edible oils was also in response to the demand from the domestic oilseed growers and a section of the oilseed processing industry. This step was expected to discourage the import of refined oils and encourage that of crude oils which could be refined locally.
The minister said the imported sugar would also be subjected to the same monthly release mechanism as applicable to the indigenous sugar. A fresh notification has been issued for this purpose. The implementation of the earlier order for such distribution restrictions on the imported sugar was stayed by the Calcutta High Court on the ground that it was discriminatory vis-a-vis the indigenous sugar.
The decisions
Sugar
* Import duty on sugar raised from 27.5% to 40%
* Countervailing duty of Rs 850 per tonne to stay
* Sugar levy reduced from 40% to 30%
* Imported sugar to also come under monthly release mechanism
* Levy to be imposed on imported sugar later
* No change in sugar distribution from fair price shops
Edible Oils
* Import duty on refined edible oil hiked from 15% to 25%
* No change in import duty on crude cegetable oils