The government has decided to impose export duty of 20 per cent on the export of raw sugar, white or refined sugar, in order to boost domestic supply and to keep the domestic prices of sugar under check, which are ruling high at Rs 40/kg
With retail sugar prices soaring to around Rs 40/kg from Rs 30/kg six months ago the government has taken a series of measures in recent weeks to curb a rise in sugar prices, including suspending an earlier order for the compulsory sugar exports of 3.2 million tonnes and capping the amount of sugar that dealers and traders can pile up at 500 tonnes across states, except Kolkata, to discourage hoarding.
As the global sugar prices are rising, the traders may increase the export of sugar to make profit hence the Food Minister Ram Vilas Paswan had earlier announced that the ministry has proposed to levy 25 per cent custom duty on export of sugar to keep exports under control. An increase of 50 per cent in global sugar prices in last three months due to disruption in supply from Brazil had made exports viable.
The country's sugar production is estimated to decline to 25 million tonnes in 2015-16, as against 28.3 million tonnes last year. The annual domestic demand is pegged at 26 million tonnes. The government has forecast further decline in output in next year at 23-24 million tonnes. However, it has maintained that there would be no shortage as the country would have the opening stock of 7 million tonnes at the start of the next marketing year, taking total availability to 30-31 million tonnes.
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