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Import duty hike turns sugar sour

June 24, 2014

Sugar costlier by `60/ quintal after import duty raised to 40%

SUGAR turned bitter on Monday getting costlier by `60 per quintal at leading wholesale markets with the import duty being raised from 15 per cent to 40 per cent. Further, increased off-take by bulk consumers to meet summer season demand also influenced prices.

"We have reached a consensus to raise the import duty to 40 per cent," food and consumer affairs minister Ram Vilas Paswan said after meeting senior government officials here.

In the Capital, Sugar ready M-30 and S-30 traded higher at `3,320-`3,460 and `3,300-`3,430 as against previous levels of `3,270-`3,400 and `3,250-`3,380 per quintal— showing a rise of `50/ `60 per quintal.

Besides, an additional interest-free loan of `4,400 crore will be provided to sugar mills as part of a sweet deal to help them clear pay-ment due to farmers. As part of the bailout package for sugar mills, it was also decided that the export subsidy will be extended till September to give relief to the sugar industry, which owes `11,000 crore to cane growers largely in Uttar Pradesh.

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Source: Mail Today (India)

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