The Government today slapped a 10 per cent duty on raw sugar imports. It also raised the import duty on some category of flat alloy steel products.

Import duty on certain flat steel products such as hot and cold rolled alloys has been hiked to 7.5 per cent from 5 per cent, according to a Finance Ministry notification.

With this move, alloy and non-alloy steel attract the same level of import duty.

Thanks to the lower import duty of 5 per cent on alloy steel against 7.5 per cent for non-alloy, many import consignments of non-alloy steel treated with boron were being categorised as alloy steel.

The purpose for which such imports were made does not change, but the change in classification results in duty benefits, official sources said.

“This is a welcome move and plugs the loophole in the duty structure, thereby increasing revenue for the exchequer,” said an Essar Steel official.

Steel imports jumped 40 per cent in the April-June quarter on rising domestic consumption (see table).

The Finance Ministry notification slapped a 10 per cent Customs duty on raw sugar imports by bulk consumers. The Government had allowed duty free import of raw sugar towards the start of the 2009-10 sugar season on anticipated shortfall in output.

Millers said the levy of import duty on raw sugar or refined sugar will not make any difference to them. “We are not really worried about it,” said Mr Abinash Verma, Director-General, Indian Sugar Mills Association.

India, which currently has a surplus output, has emerged one of the major exporters by shipping close to 2.5 million tonnes so far in the current season. Raw sugar is imported by companies such as Shree Renuka Sugars and Simbhaoli Sugars that have set up refineries.

“I don’t think the duty hike will have any impact on us. As such nobody is importing now,” said Mr G. S. C. Rao, CEO, Simbhaoli Sugars.

Companies with refineries import raw sugar and process them for export.

Unconfirmed agency reports said Shree Renuka Sugars was importing about 1.5 lakh tonnes from Brazil to be refined at its plant in Kandla.