Government looks at industry’s higher import duty demand on sugar.

NEW DELHI: Food minister Ram Vilas Paswan said on Thursday that the government is examining sugar industry's demand to increase the import duty on the politically-sensitive commodity to 40% from 15%. And, the petroleum ministry will also examine the issue of increase the percentage of ethanol blending in petrol to revive the sugar industry, the minister added.

The demand to raise the duty comes ahead of the Budget with Paswan scheduled to meet commerce & industry minister Nirmala Sitharaman, who is also the minister of state for finance. A package of sorts is being readied for the sector as Maharashtra goes to polls later this year. Higher import duty will act as a further buffer to the shipments of the sweetener into the country during a bumper cane harvest, resulting in lower price of sugar.

Paswan said the government is looking to provide additional interest-free loans to cash-starved sugar mills for clearing arrears to sugarcane growers so that both industries don't die and farmers get their arrears. "We have to keep farmers' interest in mind and have to ensure that sugar mills are in good financial health to clear Rs 11,000 crore arrear to cane growers."

Industry sources said already between one and 1.5 lakh tonnes of sugar have been imported and another 1.5 lakh tonnes are on its way. Domestic players have been demanding raising the duty to help lift prices.

"Each minister has given suggestions. We have not yet taken any decision...We will discuss among ministries and with the Prime Minister what we can do best for the benefit of both farmers and mills. A cabinet note will be prepared accordingly," he added.

Source : timesofindia.indiatimes.com