Govt doubles import duty on sugar to 100%, hikes chana to 40%

New Delhi: The government on Tuesday doubled import duty on sugar to 100 per cent and raised duty on chana to 40 per cent to protect domestic farmers. At present, customs duty or import tax on sugar is 50 per cent and that on chana (chickpeas) is 30 per cent.

The move is aimed at curbing cheaper imports and ensure remunerative prices to domestic growers. The notification issued by the Central Board of Excise and Customs (CBEC) seeks to increase import duty on all types of sugar (raw sugar, refined or white sugar) from the present 50 per cent to 100 per cent. 

“The higher tax has been imposed with immediate effect and without an end date,” says CBEC.  The sugar industry has been demanding hike in import duty as ex-mill rates have fallen below the cost of production, affecting their ability to make cane payment to farmers on time.