India likely to raise sugar import tax to 50%

New Delhi: India, the world`s biggest sugar consumer, is likely to raise import duty on the sweetener to 50 percent from 40 percent in an attempt to restrict cheaper flow of the commodity from overseas, a government official said on Friday.

"There have been some apprehensions of cheaper imports flooding the Indian market. That`s why the government is likely to raise the duty to 50 percent," the official, who did not want to be identified, said.

The government in April allowed the duty-free import of 500,000 tonnes of sugar by the end of June to keep a lid on prices after local production fell by a fifth from a year ago.

However, in 2017/18 marketing year starting from Oct. 1, India's sugar output is expected to jump a quarter from the previous year to 25 million tonnes.