The government said Friday it has decided not to increase import duty on sugar although industry bodies and manufacturers had demanded a hike to curb shipments of the sweetener.

In a written reply to the Lok Sabha, the minister of state for finance SS Palanimanickam said representations received from industry associations and sugar companies were examined.

“... After taking into account relevant factors like international prices, domestic prices, import volume and domestic production, it was not found feasible to increase the customs duty on sugar,” he said.

The minister was replying to a query whether the Centre has received demands to raise sugar import duty to 60% to stem shipments.

Industry bodies have been demanding a hike in the customs duty on sugar from the present 10% to curb imports.

Sugar output in India, the world's second-largest producer after Brazil, is estimated to decline to 24.3 million tonne in the 2012-13 marketing year (October-September) against over 26 million tonne in the previous year.

The annual domestic demand is seen at 22 million tonne.