Pawar Prompts for a 20-25% Duty on White Sugar Imports

With sugar prices landing back on a stable level, Food and Agriculture Minister Sharad Pawar today pointed to impose up to 25% duty on refined sugar imports in a view to protect the domestic industry.

In addition, he posted that the certain parts of the industry have prompted towards 60% duty on white (refined) sugar, while others favor 40%.

Retail sugar prices touched at nearly Rs. 50 a kg in January; however, prices have since registered a squeeze 30% to around Rs. 35 per kg.

The cost of imported white sugar excluding duties works out to Rs. 26 per kg at the current global prices. The landed cost was nearly Rs. 40 a kg in January.

Also, with higher output in 2009-10 (October-September), the industry has been calling for l import duty on refined sugar primarily to keep a track against a crash in prices. Duty-free imports of both raw and refined sugar have been granted permission since February last year.

The empowered group of ministers, spearheaded by Finance Minister, Pranab Mukherjee, is expected to ponder over the food ministry's proposal for import duty on June 10, sources uncovered.

The production outlook indicate encouraging scenario in 2010-11. Both the industry and government hope the production to exceed the demand.

source: stockwatch.in