LOW TARIFF ON SUGAR IMPORTS DESTROYING SUGAR INDUSTRY
Article Abstract:
The Indian Sugar & General Industry Export Import Corpn Ltd (ISEIC) has stated that low import tariffs on sugar is affecting the Indian sugar industry. Over 450 sugar producing units are on the verge of closure as huge quantities of sugar are being dumped into India due to the low tariffs. The dumping is affecting the Indian sugar industry as the industry has to compulsorily offer 40 percent of their production for sale through the public distribution at a price which is 20 percent lower than their production costs. The balance is being sold at 15 percent more than the production cost to counter the subsidy. According to the ISEIC, there is no justification in the low import tariffs as India has 55 lakh tonnes of sugar stock and is expected to report an increased output during the current sugar cane crushing season. More over sugar prices are stable. The domestic sugar industry has asked the government of India to raise the import duty to 150 percent in line with the rules of the World Trading Organisation (WTO). The private traders have imported 10 lakh tonnes of sugar at a cost of Rs1,300 crore. (ag)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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SWEET RELIEF, OUT OF CONTROL
Article Abstract:
The recommendations of the Mahajan Committee report for the sugar industry are expected to bring about drastic changes in the system existing at present. Some of the major recommendations include complete decontrol of sugar prices in phases over the next two years, discontinuation of sugar supply under the public distribution system (PDS), continuation of statutory minimum price (SMP) mechanism and sugar imports under open general licence with 40 percent import duty. The report has also suggested imposition of countervailing duty of Rs85 per quintal to cover excise and cess and Rs50 per quintal to cover incidence of taxes on purchase of sugarcane levied by coastal states. To build export market, the committee has recommended a regular annual export quota of 10 lakh tonnes. Regarding incentive schemes for new factories and expansion projects, the sugar units will continue to enjoy the benefits of tax exemption for the balance period of their entitlement of five to eight years. (gsh)
Comment:
India: Mahajan Committee recommends complete deregulation of sugar over next 2 years
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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BASL NETS Rs8.45 Cr FOR 9 MONTHS
Article Abstract:
Bannari Amman Sugars Ltd (BASL) has posted a net profit of Rs8.45 crore on net sales of Rs118.65 crore for nine months ended December 31, 1998. Its total expenditure is Rs127.33 crore. Its depreciation and interest charges are Rs4.41 crore and Rs7.72 crore respectively. It has posted a net profit of Rs2.57 crore on a net sales of Rs44.84 crore for the third quarter ended December 31, 1998. (rk)(m)
Comment:
Bannari Amman Sugars Ltd (BASL) has posted a net profit of Rs8.45 crore on net sales of Rs118.65 crore for nine months ended December 31, 1998.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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