Government Preparing to Increase Tariff on Sugar Imports

January 28: The government is preparing to impose additional tariff on sugar imports in a bid to protect the domestic sugar industries, which are on the verge of collapse.

The fall in price of sugar in the international market has affected the local sugar industries as they are unable to compete with the imported sugar. Following complaints from the sugar producers of the country, the government decided to increase the customs duty on sugar imports.

Currently, the government imposes 15 percent customs duty on sugar. Preparations are underway to increase the tariff to 35 percent, informed Joint-Secretary Mukunda Prasad Poudyal of the Ministry of Supplies. The ministry is consulting with other concerned ministry regarding this issue, according to Poudyal. The Ministry of Agriculture Development had initiated talks with various ministries to increase the tariff. Sources at the ministry informed that the ministry has written letters to the ministries of industry, supply, commerce and finance to impose higher tariff on sugar imports in order to encourage local sugarcane producers.

Although the increase in tariff on sugar imports would benefit the local sugar industries and sugarcane producers, the consumers will have to pay a higher price for sugar.