The government on Thursday imposed a 20% duty on exports of sugar to curb a rise in prices witnessed in recent months. Its to keep a lid on domestic prices, the government said on Thursday, a move that is likely to boost global prices of the sweetener.
“To keep the domestic prices of sugar under check, the government has decided 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.
“There is an increasing trend in the price of sugar in the international market. Traders may increase the export of sugar to make profit. Therefore, to keep the export of sugar in control, it is purposed to levy 25% custom duty on export of sugar,” Food minister Ram Vilas Paswan had said.
Sugar output in India, the world’s no. 2 producer behind Brazil, is expected to decline this year due to a drought in major growing regions, while global prices have risen to two-and-a-half year highs.