Government weighing proposal to hike import duty on white sugar to 20 per cent

The government is likely to increase the import duty on white sugar to 20 per cent from the current 10 per cent in early November so that retail prices of sugar remains firm during the festival season.

The government may also scrap the 10 per cent duty on raw sugar imports to encourage value-addition.

''We have received different proposals. One is to increase the duty on white sugar imports to 20 per cent and another to scrap the duty on raw sugar imports. We will discuss the issue with the agriculture and commerce ministries and take a proposal to the cabinet in about 15 days,'' food minister K V Thomas said.

While the availability of sugar in the country is at a comfortable level at present, the minister said, sugar production in the October-September 2012-13 season is expected to be around 23.5 million tonnes, against 26 million tonnes produced last year.

Domestic consumption of sugar in India stood at over 22 million tonnes last year while the country exported an estimated 3.5 million tones of sugar during the year, he said.

The minister also said mills in the south and western parts of the country generally are in favour of allowing sugar imports while factories in Uttar Pradesh, which are expecting good sugarcane harvest, are against any imports, as it would exert pressure on prices.