Government imposes 20% tax on sugar export

India has imposed a 20 % tax on sugar exports to keep a lid on domestic prices, the government said on Thursday, a move that is likely to boost global prices of the sweetener.

Food minister Ram Vilas Paswan said this week the government plans to introduce a 25 % tax on sugar exports to maintain local supplies.

Sugar output in India, the world`s no. 2 producer behind Brazil, is expected to decline this year due to a drought in major growing regions, while global prices have risen to two-and-a-half year highs.