The government on Tuesday abolished customs duty on export of sugar to zero percent from its current level of 20 percent, government release said.
The government on Tuesday abolished customs duty on export of sugar to zero percent from its current level of 20 percent, government release said. The duty cut has been made to boost overseas sales, the release said. “In order to promote exports with the objective of evacuating surplus stocks from the country, the Government has decided to remove customs duty on export of sugar from its current level of 20% to zero percent,” the government release said. The latest decision will help in keeping sugar demand healthy and stabilising prices of domestic sugar in the country.
In 2018-19, the production of sugar is estimated to be higher than the estimated domestic consumption in the country. There is a sufficient surplus stock of sugar that is available in the country for export. Other than moderating the prices, demand and supply balance will be maintained as a result of duty cut, government said.
Around 25.806 million tonne of sugar has been produced by the sugarcane mills in the country during the present season up to March 15, 2018. The produced amount is 8.256 million tonne more than the previous year’s production of 17.55 million tonne.
Around 106 mills have already been closed out of 523 sugar mills in the country, said Indian Sugar Mills’ Association (ISMA) on Monday. The list is as such – 31 in Maharashtra, 48 in Karnataka, 5 in Uttar Pradesh, 9 in Tamil Nadu, 7 in Andhra Pradesh and Telangana, and 6 mills in other states.
Indian Sugar Mills’ Association (ISMA) on Monday said that apart from this decision the government should also announced export of 40-50 LT of raw sugar well before the next season starts. It will help the millers to plan, produce and export raw sugar in a better way from the beginning of the next season. It will also help in reducing burden on mills carrying higher inventories, ISMA said.