Sugar milers have been asking the government to increase the import tax , which currently stands at 10%. Raising the tax would keep local sugar competitive in the domestic market and protect local farmers.
India’s biggest refiner, Shree Renuka Sugars Ltd., is importing raw sugar for domestic sales by paying the import tax and also with zero tax for re-export, according to Narendra Murkumbi, Managing Director.
A lower harvest after two years of surplus may cause India, the world’s second-biggest consumer to boost imports. The country has already contracted to import 920,000 tons of raw sugar since the beginning of the season in October, despite surplus stocks at home, the chief of a leading industry body said.