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Government may lower import duty, ban exports to cool sugar prices

23 May 2016 Evaluate

The government will consider lowering import duty on sugar and banning exports of the sweetener if prices spike further from the current level, as per information provided by Food Minister Ram Vilas Paswan. The minister has written to Maharashtra, Uttar Pradesh, Karnataka and Tamil Nadu to keep a close watch on sugar stocks held by millers to ensure availability in the domestic market.

The government in the last few weeks has taken several steps to check the price rise. The government had laid imposition of stock holding limits on sugar traders and withdrawal of sugar output subsidy of Rs 4.50 per Kg to mills. The retail sugar prices in past two months have crossed Rs 40 per kg due to 11% fall in domestic sugar output in the ongoing 2015-16 season.

Sugar production in India, the world’s second largest producer, is estimated to be about 25 million tonnes in 2015-16, as against 28.3 million tonnes last year.



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