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Sugar mills seek increase in duty to curb unwanted imports

Global price crash makes raw sugar viable even at 40% duty, mills' supply glut due to cheap import

Dilip Kumar Jha  |  Mumbai 

Sugar mills seek increase in import duty to curb unwanted import

mills have urged the government to raise the on raw to 60 per cent from 40 per cent.
The government had allowed import of 500,000 tonnes of raw till June 30, which industry sources said had been contracted for. Mills have imported 477,000 tonnes, but a price crash in the global market has made raw imports viable even with 40 per cent Customs duty. Mills have contracted for another 296,000 tonnes. will soon be flooded with imported despite abundant local output.
A letter from a member of the Indian Mills Association (ISMA) to its chairman G Sarita Reddy,  said, “Mills would require price of Rs 36 a kg to enable them to pay the fair and remunerative price of Rs 255 a quintal to farmers.
We do not want prices to fall from this level due to imports. Hence, the should be raised immediately to 60 per cent. The government should also not extend the import period beyond June 30.”
had earlier forecast India’s output at 21.3 million tonnes and a carryover stock of 7.5 million tonnes, substantially higher than the 23.5 million tonnes estimated demand. Much of the is available in northern states, resulting in a deficit in the the west and south. “The longer term competitiveness of the Indian industry is a worry. High cane prices are leading to a very high cost structure,” said Narendra
Murkumbi, managing director, Shree Renuka Sugars, India's largest refiner.
According to industry estimates,  transportation of refined from the north to the west and the south is an issue because of costs. Mills in the deficit regions need locally grown raw