11 June 2016 12:00 am
REUTERS- India’s plan to levy tax on sugar exports could hit nearly 75,000 tonnes of shipment heading towards Myanmar and Sri Lanka, an industry official said yesterday.
India, the world’s second biggest sugar producer after Brazil and a top consumer, has so far exported 1.7 million tonnes in the marketing year that began on Oct. 1, said Rahil Shaikh, Managing Director at ED&F Man Commodities India Pvt Ltd.
India plans to impose a 25 percent tax on sugar exports to maintain local supplies after two straight years of drought hit the crop in the South Asian nation.
Rising local sugar prices may force India to scrap tax on sugar imports, Shaikh said, adding he expects the country’s sugar output in 2016/17 to be at around 23.5 million tonnes, down from 25.2 million tonnes in the previous year.