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India's doubles sugar import tax to 100%
[MUMBAI] India raised the import duty on sugar to 100 per cent from 50 per cent, a government order said on Tuesday, as falling prices of the sweetener made it difficult for local mills to pay the mandatory price to cane farmers.
The hike in import tax could halt sporadic imports from neighbouring Pakistan, which has been giving a subsidy for the foreign sales.
Sugar prices have fallen 17 per cent in the local market since the start of the marketing year on Oct 1, making it difficult for mills to pay farmers the 11 per cent hike in cane prices.
India, the world's second-biggest sugar producer, requires processors to pay cane farmers within two weeks of the harvest.
The south Asian country also raised import duty on chickpeas, also known as chana, to 40 per cent from 30 per cent, a separate government order said.