Sep 24
India plans 25pc tax on sugar exports PDF Print E-mail

India plans 25pc tax on sugar exportsIndia plans to introduce a 25 per cent tax on sugar exports to maintain local supplies, the government has said.

 

Sugar output in India, the world’s no. 2 producer behind Brazil, is expected to decline this year due to a drought in major growing regions, while global prices have risen to two-and-a-half-year highs.

 

Food Minister Ram Vilas Paswan said on Saturday that the levy was aimed at curbing the country’s exports and would help keep local prices under control in the world’s top consumer of sugar.

 

"There is an increasing trend in the price of sugar in the international market. Traders may increase the export of sugar to make profit," Paswan tweeted on Thursday evening.

 

Traders and experts said the new tax could push up global sugar prices, even though India was already expected to become a net importer in the year from October 1 following back-to-back drought years.

 

"Since we are the world's second largest sugar producer there could be a 5 per cent impact on global prices but not more," said Aurobinda Prasad, vice president research, Kotak Commodities, according to Reuters.

Source - The Financial Express