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Government mulls option to increase import duty on white sugar up to 20%

19 Oct 2012 Evaluate

In order to keep a check on flooding of white sugar in domestic market the government is mulling an option to increase the import duty up to 20%. It is also looking at scrapping import duty on raw sugar. 10% import duty is currently levied on white sugar as well as raw sugar.

According to Food Minister K V Thomas, the government would take the decision soon as it has received different proposal and they are examining these proposals. A cabinet note will be moved in the next 10-15 days after consultation with the ministries concerned. The Minister stated that in order to generate employment in domestic market it is necessary to scrap import duty on raw sugar as the imported sweetener would be refined in the domestic market leading to job creation.

Thomas stated that the free sugar export policy that started this month in the current 2012-13 marketing year will continue. From May to September 2012, the sugar exports were kept under the open general licence (OGL).

On sugar production, it is estimated that the output will be in tune of 26 million tonnes (MT) this year which will be higher as the country’s annual domestic demand is 22 MT.

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