The government may consider raising the import duty on sugar from 40 per cent to 60 per cent if global prices of the sweetener remain low, a senior food ministry official said today.
“The fall in prices would make imports viable even at the current 40 per cent duty,” the official told Cogencis.
Earlier this month, sugar mills had urged the government to raise the import duty on the commodity to 60 per cent, as low global prices of raw sugar had made imports viable.
“We have written to the Prime Minister’s Office seeking an increase in the sugar import duty as global prices are declining,” a senior industry official had told Cogencis.
Prices of raw sugar on the Intercontinental Exchange fell to a 16-month low of 13.63 cents per pound on June 2 due to expectations of higher global output in 201718, largely helped by Brazil.