In order to boost shipments, the government has scrapped the export duty of 20 percent on raw sugar, white or refined sugar. The 20 percent export duty was in force since June 2016. Earlier, the government had doubled import duty to 100 percent to check cheaper imports from overseas markets.
According to industry body Indian Sugar Mills Association (ISMA), India’s sugar production is estimated to rise by 45 percent to record 29.5 million tonnes (MT) in the 2017-18 marketing year (October-September), on the back of higher cane output in Maharashtra, Karnataka and Uttar Pradesh. Sugar output of India, the world's second largest producer after Brazil, stood at 20.3 MT in the 2016-17 marketing year.
With domestic prices falling below cost of production, ISMA and National Federation of Cooperative Sugar Factories (NFCSF) had been demanding scrapping of export duty to liquidate surplus domestic stock. As per ISMA, cane arrear to sugarcane farmers touched Rs 14,000 crore at the end of January and might rise further in wake of slide in sugar prices. Mills have produced 25.80 MT sugar till March 15 of the 2017-18 marketing year (October-September).