26 December 2013

Customs Duty on Sugar Import has been Raised to Discourage Import

In order to discourage import of sugar, the customs duty on sugar import has been raised from 10% to 15% with effect from 8.7.2013. Since then there has been hardly any imports under Open General Licence (OGL) worth affecting domestic market. 

The Government has formed an Informal Group of Ministers under the Chairmanship of Minister of Agriculture to look into the problems being faced by the Sugar industry. 

The group has, inter-alia recommended extending bank loans to sugar mills with interest subvention by the Central Government. 

The other relief measures taken by the Government to help the sugar industry inter-alia include dispensing with the release mechanism for sale of sugar, abolition of levy obligation on sugar mills for sugar produced from October, 2012. 

Delay in commencement of cane crushing may not have any significant impact on sugar production in the current sugar season which is estimated to be about 241 lac tons. 

This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Prof. K.V. Thomas in a written reply in Lok Sabha today. 

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