New Delhi, July 9:

The sugar industry has demanded a further increase in import duty as a weak rupee and declining global prices have offset the impact of the latest duty hike.

Last week, the Government decided to hike the import duty to 15 per cent from 10 per cent. On Monday, the Department of Revenue issued a notification on the duty hike on raw and white sugar.

“The increase in import duty is too little and too late,” the Indian Sugar Mills Association (ISMA) said in a statement. With falling international prices, imports are still viable. Along with the Indian rupee, the Brazilian real has also weakened against the dollar.

“Therefore, the depreciated rupee has not made raw sugar imports coming from Brazil unviable due to this small increase in duty,” ISMA said. It demanded that the import duty be raised to about 40 per cent to check any kind of sugar imports.

Pointing out that import duties on other similar agri-products such as coffee and tea were ranging from 30 per cent to 100 per cent, ISMA said it “found no justification for a meagre duty of 15 per cent on sugar.”

Can help cut CAD

“Completely stopping sugar imports will not only be in the interest of the domestic sugar industry and our own cane farmers but will also help in reducing the Current Account Deficit, which is only further depreciating the Indian rupee at an unbearable phase,” ISMA added.

According to industry estimates, about six lakh tonnes of sugar has been imported into the country under a open general licence.

Raw sugar imports under advance licensing for re-exports were estimated at around 1.2 million tonnes.

“The increase in import duty is too little and too late.”