New Delhi, Jun 23: Multi-billionaire friendly Narendra Modi government in India is all set to raise the import duty on sugar to 40 per cent from 15 per cent and to consider other incentives for mill owners. With this a huge increase in sugar prices is expected in few days.
"We have reached a consensus to raise the import duty to 40 per cent and to consider other incentives provided mills clear Rs 11,000 crore ($1.84 billion) in dues to farmers," food minister Ram Vilas Paswan said after meeting the sugar industry officials.
Paswan also told reporters the subsidy on raw sugar exports would be extended until September. India increased the subsidy for raw sugar earlier this month to boost output and exports.
The government has also decided to raise the mandatory blending of ethanol in gasoline to 10 per cent from 5 per cent.
Besides, the Government will provide an additional interest-free loan of Rs. 4,400 crore to sugar mills, who have not even made payments to cane farmers, Paswan said.
The Government will extend the sugar export subsidy of Rs. 3,300 per tonne till September this year, he added.
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