Sugar industry body ISMA seeks hike in import duty to 40% from 15%.

NEW DELHI: Sugar industry body ISMA today expected that the new government would provide a stable policy for the sector that supports 50 million farmers and sought hike in import duty of the sweetener to at least 40 per cent.

Import duty currently stands at 15 per cent. Industry has been demanding an increase in import duty to boost sales of domestic sugar as the country has surplus production.

"The sugar industry has great expectations from the new government as it is facing financial difficulties for a long period and needs stability. We urge the government's support in providing a stable policy for the Indian Sugar Industry and help the rural economy grow further," Indian Sugar Mills Association (ISMA) President Ajit Shriram said in a statement.

Industry owes about Rs 12,000 crore to sugarcane farmers due to high cane price compared with sugar prices.

Noting that sugar industry supports about 50 million farmers and generates employment for about 12 per cent of the total rural population, he said: "a stable policy will benefit all stakeholders- farmers, consumers and industry.

"We are also hopeful that the new regime will give enough impetus to green energy and push the ethanol blending program to save foreign exchange and also increase import duty on sugar to at least 40 per cent."

The ISMA President also expressed confidence that the country will see development and growth under the able leadership of Prime Minister Narendra Modi.

Sugar production of India, the world's second largest producer and biggest consumer, fell by 3.23 per cent to 23.9 million tonnes till May 15 during current 2013-14 marketing year 2013-14 ending September.

For the entire year 2013-14, sugar production is pegged at 24.2 million tonnes, four per cent less than the last year's level of 25.1 million tonnes.

The annual domestic consumption is estimated at 23-23.5 million tonnes.

Source : economictimes.indiatimes.com