The food and consumer affairs ministry has proposed a 25% duty on exports of sugar to boost domestic supplies and stem a rise in prices witnessed in recent months. Food Minister Ram Vilas Paswan stated that there is an increasing trend in the price of sugar in the international market and traders may increase the export of sugar to make profit. Therefore, to keep the export of sugar in control, it is purposed to levy 25% custom duty on export of sugar. He further added, this move will keep sufficient availability of sugar in domestic market and the price will be under control.
Reportedly the global prices have increased by 50 per cent in last three months due to disruption in supply from Brazil. India exported 1.4 million tonnes of sugar so far in the 2015-16 marketing year (October-September). Whereas, Retail sugar prices last month had crossed Rs 40 per kg due to 11% fall in domestic sugar output in the ongoing 2015-16 season.
India is the world's second largest producer of sugar with estimated production of about 25 million tonnes in 2015-16, as against 28.3 million tonnes last year. Sugar production is likely to be lower this year due to a drought in major growing regions.