Sugar industry bodies ISMA and NFCSF today met senior food ministry officials and sought hike in sugar import duty from 50 per cent to 100 per cent and scrapping of export duty of 20 per cent to liquidate surplus sugar.
Wholesale prices have fallen below the cost of production in view of estimated 6 million tonnes more production in the 2017-18 season (October-September), they said. In retail, sugar is being sold at Rs 40-42/kg.
The ministry is collecting the data and working out details on both the proposals, the official added.
National Federation of Cooperative Sugar Factories (NFCSF) President Dilip Walse Patil said: "The ex-factory prices of sugar have come down to Rs 2,950/quintal from Rs 3,500-3,650/quintal. This has led to a net loss of Rs 6-7 per kg. We have sought timely intervention from the government."
ISMA Vice President Rohit Pawar said, "There will not only be delay in cane payment but also arrears will increase by end of the season."
India's sugar production has been revised upward by 4 per cent to Rs 26.1 million tonnes for the 2017-18 season.
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