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The Government has ruled out any increase in customs duty on sugar imports to curb the inflow of cheaper sweetener into country. The sugar industry had demanded a hike in customs duty to 60 per cent from the 10 per cent at present, as cheaper sugar was finding its way into the country from Brazil and Pakistan.
In a written reply to Lok Sabha, the Minister of State for Finance S.S. Palanimanickam said it was not feasible to increase the customs duty on sugar. “…after taking into account the relevant factors like the international prices, domestic prices, import volume, domestic production etc, it was not found feasible to increase the customs duty on sugar,” he added.
According to trade sources, about 2.2 lakh tonnes of sugar imported from Brazil has found its way into the eastern parts of the country. Also, about 10-15,000 tonnes have entered the market in Punjab through the Wagah Border.
The imported sugar is cheaper by 10 to 15 per cent compared with the domestic ex-factory prices, sources said. Sugar production for the current 2012-13 season is pegged at 24.3 million tonnes (mt), down from last year’s 26 mt. The annual consumption is estimated to be around 22 mt.
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