The government has raised the import duty on sugar to 50% from 40% to curb dumping of the commodity in India as international prices fell. The Central Board of Excise and Customs (CBEC) said in its notification that import duty on raw sugar, refined or white sugar that is imported by bulk consumers under tariff head 1701 will increase from the present 40% to 50% with immediate effect. No end date was specified for the duty increase.
Cheaper imports have been adversely affecting domestic sugar mills. The government had also set the fair and remunerative price (FRP) of sugar cane at Rs 255 per quintal for sugar season 2017-18 beginning from October.
The government had allowed duty-free imports of raw sugar up to five lakh tonnes in April this year, in order to improve domestic availability, fearing a drop in domestic output in 2016-17 could trigger a spiral in prices to irrational levels.