Food Ministry proposes 25% duty on sugar exports
In an attempt to increase the export of sugar, and profits with the increasing international prices, the Food Ministry has proposed to impose 25 % duty on export of sugar, Union Minister Ram Vilas Paswan said.
To ensure sufficient supply of the sweetener in the domestic market, with the increase in international prices of sugar, traders may increase the export of sugar to make profit, Paswan added.
"To keep the export of sugar in control, it is proposed to levy 25 % custom duty on export of sugar," Paswan said in a series of tweets.
He added that this move will keep sufficient availability of sugar in domestic market and the price will be under control.
According to trade sources, sugar exports have become viable now as global prices have increased by 50 % 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 % 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 million tonnes last year.