Food Ministry proposes 25% duty on sugar export to ensure sufficient supply
The Food Ministry has proposed imposing 25 percent duty on export of sugar to ensure sufficient supply in the domestic market, Union Minister Ram Vilas Paswan has said.
New Delhi: The Food Ministry has proposed imposing 25 percent duty on export of sugar to ensure sufficient supply in the domestic market, Union Minister Ram Vilas Paswan has said.
International prices of sugar are rising and therefore traders may increase the export of sugar to make profit, Paswan said.
"To keep the export of sugar in control, it is proposed to levy 25 percent custom duty on export of sugar," Paswan said in a series of tweets.
This move will keep sufficient availability of sugar in domestic market and the price will be under control, he added.
According to trade sources, sugar exports have become viable now as global prices have increased by 50 percent in last three months due to disruption in supply from Brazil.
As demand and supply of sugar in India are at par, the government does not want any export from the country.
The country had exported 1.4 million tonnes of sugar so far in the 2015-16 marketing year (October-September).
Retail sugar prices last month had crossed Rs 40 per kg due to 11 percent 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 MT last year.