The import duty on sugar has been increased from the existing 15 percent to 25 percent, a notification from the Central Board of Excise and Customs stated.
The increase in duty will be on both raw and refined sugar. The duty has been hiked in an attempt to breathe life into the sagging sugar mills in the country, which are said to owe farmers approximately Rs 6,800 crore.
The Food Ministry had earlier recommended increasing the duty to 40 percent to ensure that importing sugar would be unviable and the domestic industry would be revived. After deliberation, the Central Board of Excise and Customs decided to hike the duty to 25 percent.
