The Finance Minister P. Chidambaram has made a provision for imposing export duty of up to 20 per cent on raw sugar, white or refined sugar in the Union Budget. Currently, there is no duty applicable on sugar exports.
In case of imports, the Government already has a provision to increase the customs duty to up to 60 per cent to control its inflow into the country. However, the current import duty stands at 10 per cent.
“The industry thinks it is a positive move towards decontrol of sugar exports and imports. We think there would no longer be a ban on exports, but the Government would regulate the exports and imports of sugar through changes in tariff. This is broadly in line with the recommendations of the Rangarajan Committee on sugar decontrol,” said Abinash Verma, Director-General of the Indian Sugar Mills Association (ISMA). The industry, faced with cheaper imports mainly from Brazil and Pakistan, has been demanding an increase in customs duty to up to 60 per cent on sugar imports. 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 from Punjab (Pakistan) through the Wagah Border. The imported sugar is cheaper by 10-15 per cent compared with domestic ex-factory prices, sources said.