NEW DELHI (Reuters) - India will examine raising import tax on sugar to support local prices and help mills clear dues to cane growers, Food Minister Ram Vilas Paswan said on Thursday.
"We have to keep farmers' interest in mind and have to ensure that sugar mills are in good financial health to clear 110 billion rupees ($1.85 billion) arrear to cane growers," he said after a meeting with some of his cabinet colleagues.
India, the world's second-biggest producer after Brazil, imposes a 15 percent tax on sugar imports.
Local mills have been demanding raising the duty to as much as 40 percent to help lift prices, which have been pressured by huge stocks.
($1 = 59.3450 Indian Rupees)
(Reporting by Mayank Bhardwaj; Editing by Krishna N Das)