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The government today increased import duty on raw by 5% thus taking the duty to 15% from 10% earlier, however, the sugar industry wants the hike in import duty to be higher.
Although, the quantum of increase is negligible in comparison with the industry’s demand of 30-40% yet the hike would protect the interest of domestic sugar industry which faces oversupply of 2 million tonnes.
"With international prices falling the imports will not still become unviable. Even though the rupee has depreciated with regard to US dollars, the Brazilian reais has also depreciated similarly. Therefore, the depreciated rupee value has not made raw sugar imports coming only from Brazil unviable due to this small increase in duty. There is so much sugar within the country that the import duty needs to be raised to such a level of around 30-40% to totally check any kind of sugar import. The sugar industry would continue to request the government to increase import duty on sugar to 40%," Indian Sugar Mills Association said in a statement.
