Zee Media Bureau
New Delhi: In a move that could lead to rise in the price of sugar, the government on Friday hiked the import duty on it from 15 percent to 25 percent.
In June, Food Minister Ram Vilas Paswan had said import duty could be raised to 40 percent from 15 percent if mills make clear farmers dues.
The duty was last raised in August last year from 10 percent to 15 percent.
Currently raw and refined sugar attract import duty of 15 percent, while Khandsari sugar attracts 60 percent duty.
A rise in the duty will make imports unviable for port-based refiners despite a plunge in global prices due to ample supplies from Brazil and Thailand.
Earlier this year, the government had announced interest -free loan worth Rs 6,600 crore to sugar mills to pay dues to growers.
The sugar industry has been facing a cash crunch due to higher cost of production and lower selling prices in the wake of surplus output over the past few years.
The country's sugar production is expected to 24.3 million tonnes in 2013-14, as against 25.1 million tonnes in the last year.
With agency inputs
