Govt to lift sugar stockholding cap; may raise duty if price fall persists

The government had in July raised the import duty on sugar to 50% from 40% to curb imports and stop building up of sugarcane arrears

With ex-factory sugar prices showing a downward spiral since the start of the 2017-18 crushing season in October, thanks to the expected bumper harvest, the central government is planning to discontinue the stockholding limit from December 31. It might also consider other measures, including further raising the import duty, if the decline in prices persists.

According to officials, while the removal of stockholding cap is almost decided, a final call on increasing the import duty is yet to be taken, as it involves consultation with other ministries as well.

The government had in July raised the import duty on sugar