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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Tax on export of sugar: Discuss the issue of imposition of 20% tax on export of sugar.
Jun 20, 2016 Related to : GS Paper-3.

Ans :


India is the world's second largest sugar producer (after Brazil) and contributes about 5.3% of world exports. India has exported about 1.6 million tonnes of sugar so far in the 2015-16 marketing year (otober-september). India is also largest consumer of sugar in the world.


India's sugar production was affected by lack of rainfalls and unusually hot temperatures. In the backdrop of rising trend of sugar prices in the international market due to delayed production in Brazil, sugar export was increased and lead to sharp rise of sugar prices in domestic market. To keep the domestic prices of sugar under check in the country, recently the central government has imposed 20% duty on the export of raw white or refined sugar.

Imposition of duty on export of sugar has wide range of ramification in the country, which are discussed below.


  • It will help to check the price of sugar in domestic market, which has surged sharply in recent period.
  • It will also ensure the availability of sufficient quantity of sugar in domestic market for Indian consumers.
  • Similarly it will help to conserve sugar domestically in view of an expected fall in sugar production in the coming 2016-17 production year.
  • This will have direct, adverse consequences on the farmer- the lowest rung in the food chain.
  • It also affect the negatively to sugar mill owners, as they are already suffering from various issues.
  • The move will reduce the supply of sugar from India, and it could exacerbate a global supply deficit that was partly due to heavy rains in Brazil, which delayed sugar production in the world's largest exporter.


Central government’s move is aimed at the price check and ensuring adequate supply of sugar for domestic consumers. Though it affects farmers and sugar mill owners, but it is need of hour to ensure the need of consumers at domestic market.

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