Import duty on Sugar hiked by five percentage points
THE colossal notification 12/2012-Cus dated 17/03/2012 sees an amendment to the following 'sweet' entries-
Table
S. No. | Chapter or Heading or sub-heading or tariff item | Description of goods | Standard rate | Additional duty rate | Condition No. |
|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) |
76. | 1701 | Raw Sugar | 10% | - | 3A |
77. | 1701 | Refined or white sugar | 10% | - | 3B |
78. | 1701 | Raw sugar if imported by a bulk consumer | 10% | - | 3C |
The Central Government has carried an amendment to the above entries inasmuch as for the entry in column 4, the entry "15%" is substituted. The conditions have come out unscathed even after the amendment.
This means to say that the Import duty on Sugar has been raised by five percentage points.
The hike is welcomed by the domestic Sugar Industry which is facing the problem of plenty - over production and competition from imported sugar. With so much of sugar in stock in India, some mills are even selling the sugar at prices below the cost of production. (Fortunately there will not be any valuation issues with Central Excise).
The Industry associations have been demanding a steep hike in the rate of customs duty to at least 40%. Even though the Government did not grant them that favour, the financial market did. With the rupee falling so low, it is no more profitable to import sugar and compete with the local market.
In the entire Sugar scheme everybody benefits except the farmer - it seems the sugar industry in India owes Rs. 9000 Crores to the sugarcane farmers!
Notification No. , Dated: July 8, 2013