To check the surging price of sugar, Government of India has imposed an export duty of 20% on sugar which will be effective from today. The price of per kilo sugar has increased up to Rs. 40 and even Rs. 45 in some areas. To boost up domestic supply and meet the demand the government took the decision and wanted it to be effective at an urgent pace.
Due to drought, the price of wheat, pulses and some other commodities like tomatoes have gone up, and it’s increasing till now.
Food Ministry Proposed 25% Custom Duy Hike, Govt Came Down at 20%
Ministry of Agriculture has been observing this sharp rise and the government take some necessary steps to check this sharp price surge. That’s why yesterday, the circular came that 20% extra customs duty will be levied on raw sugar, white sugar and refined sugar, etc. The duty is lower than the percentage proposed by Food Ministry. It proposed to impose 25% duty hike immediately.
Ministry of Finance tweeted this on social medias-
To keep domestic prices of sugar under check, Govt. has decided to impose export duty of 20% on export of raw sugar, white or refined sugar.
— Ministry of Finance (@FinMinIndia) June 16, 2016
India is the seconf largest sugar producer in the world while Brazil holds the first position. India has exported around 1.6 millions tonnes of sugar last year and due to high price in the Global market it’s increasing sharply. To have a tighter grip the government has withdrawn export-linked production subsidy and imposed stock limits on sugar traders. Minister Ram Vilas Paswan tweeted about their stand on 25% duty hike earlier-
Therefore, to keep the export of sugar in control, It is purposed to levy 25% custom duty on export of sugar.
— Ram Vilas Paswan (@irvpaswan) June 9, 2016
Ultimately the central government has taken the final step and put the surcharge duty on sugar to check the exponentially increasing price of sugar though there is no duty on the other items like Wheat, pulses, etc.
The Food ministry and Finance Ministry are observing the conditions carefully, and they may propose further duty hike or impose new duties on some other items if it becomes a necessity to check the domestic price!