Kolhapur: Sugar industry stakeholders have welcomed central government's decision to hike sugar import duty from 40% to 50% for stabilising domestic sugar prices.

 

Bumper production and currency fluctuations had brought down sugar prices in international market. There was a potential threat to the sugar being imported. To keep domestic sugar prices stable, the government increased the cap on import duty by 10%. Players in the industry have welcomed the decision.

 

The executive director of Chhatrapati Shahu Maharaj Cooperative Sugar factory Vijay Autade said, "We had been demanding a hike in sugar import duty, to stabilise domestic sugar prices. The low international price fluctuations in currencies have made it easy to import sugar. We need sugar prices to be at Rs 3,500 per quintal to pay sugarcane bills. Recently the central government has increased sugarcane procurement prices by Rs 250. Therefore stable prices are a perquisite for a healthy sugar industry."

 

He further added, "The decision has postponed the immediate threat of import. International markets need to be monitored before any decision is taken. This decision would help sugar industry repay its debts."

 

Another Kolhapur based sugar expert P G Medhe said, "The government should have hiked it up to 60% in the interest of the sugar industry. However, even a 10% hike can deter sugar import. Union government's decision had an impact on sugar sale on Wednesday as prices increased by Rs 50 per quintal. The country has enough stock of sugar and there is no immediate need for sugar import. The area under sugarcane cultivation has also increased due to a good monsoon last year leading to a good beginning for this season."

The managing director of Datta Cooperative Sugar factory Shirol M V Patil said, "The decision will have an impact on domestic sugar prices and it will remain stable which is in our best interests. However the country did not see any import when the duty was at 40%."