New Delhi: The government imposed 20 per cent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.
The move comes at a time when prices have surged sharply in various commodities including tomato, wheat and pulses.
The duty has been imposed to restrict exports following sharp rise in global prices. The duty is, however, lower than 25% proposed by the Food Ministry. India, the world’s second largest sugar producer after Brazil, has exported 1.6 million tonnes of sugar so far in the 2015-16 marketing year.
Further exports are unlikely to take place with this decision. With retail sugar prices soaring to around Rs 40/kg from Rs 30/kg six months ago, the government has taken various steps to contain prices including withdrawal of export-linked production subsidy and imposition of stock limits on traders.