New Delhi, July 9
The government today hiked import duty on sugar to 15 per cent from 10 per cent to help the industry clear Rs 9,000 crore cane arrears to farmers - a move that would make the sweetener costlier for the common man.

In a notification issued by the Central Board of Excise and Customs (CBEC), the duty of both raw and white (refined) sugar have been raised to 15 per cent.

The sugar imports have been putting pressure on domestic prices and have prevented millers from clearing cane arrears to farmers.

Currently, millers in Uttar Pradesh are selling sugar to wholesalers at rates lower than even the production cost, according to the industry experts.

The hike in duty is aimed at curbing import of sugar and improving the bearish sentiment in domestic market.

This would, however, lead to rise in sugar prices across the country. Currently prices of sugar (loose) is ruling at Rs 40 per kg and packed sugar at Rs 50/kg in Delhi.

Finance Minister P Chidambaram, Agriculture Minister Sharad Pawar and Food Minister KV Thomas had a meeting on July 4 to review the import duty.