Govt drops 60% import tax on sugar

India has dropped a 60% import tax on sugar, a government statement said, reversing the rule that was slapped from January 1.

The new rule is applicable from January 8, the statement posted on a government website said on Monday, without giving the reason behind the latest move.

India, the world's top consumer and the biggest producer behind Brazil, had abolished the sugar import tax in early 2009 to overcome an acute domestic supply shortage, triggered by the worst drought in four decades.

Currently India does not import sugar. Farm Minister Sharad Pawar on Monday told reporters his government still has plans in place to export 500,000 tonnes of sugar.

Source : moneycontrol.com