“To keep the domestic prices of sugar under check, the government has chose to impose export duty of 20 per cent on the export of raw sugar, white or refined sugar”, the Finance Ministry said in a release.
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“With the recent spurt in global prices, sugar exports from India was just about becoming viable but the 20 percent export duty which translates into around 100 Dollars per ton will make Indian exports unviable”, Abinash Verma, Director General, ISMA was quoted as saying in a statement.
The government yesterday imposed a 20 per cent export duty on sugar to curb outbound shipments, which had become viable after a sharp rise in global prices over a past few months. “They are going to remain stable in the long run”, he said.
Notably, due to delayed harvest in Brazil, there has been a rise in worldwide prices, which has made exports of Indian sugar feasible as well.
India, the worlds second largest sugar producer after Brazil, has exported 1.6 million tonnes of sugar so far in the 2015-16 marketing year (October-September).
Prices of raw sugar in the domestic market fell in the opening session at the Navi Mumbai wholesale market with the government decision on Friday.
The said inflation has been reflected in the other commodities like tomato, wheat and pulses too which have seen a major spurt in prices recently.
As of 30 April, sugar output was down by 11% during this season at 24.6 million tonnes with only 48 mills still crushing cane, Mint reported on 15 June.
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