Rajasthan exempts VAT on sugar

JAIPUR: Now sugar would be cheaper by Rs 2 in Rajasthan. Rajasthan government has decided to exempt VAT on imported sugar in the state till June 30. This will help in reining the spiralling sugar prices in a week’s
time.

“The state imposes 4% VAT on sugar. With this exemption, the prices will go down by Rs 160 per quintal,’ says a government official.

Sugar Trade Association of Rajasthan secretary Ballabh Kabra said that this decision can make way for sugar mills to buy imported sugar.

“This is the first step to cool down the prices. We are waiting for government’s nod for importing sugar on our own. Sugar prices in Rajasthan are hovering around Rs 41- 43 a kg. Apart from 4% VAT, sugar attracts mandi tax of 1.6% and an entry tax of 0.25% in Rajasthan,” he said.

According to Indian Sugar Mills Association, the world sugar economy is facing significant gap between world consumption and production for the second consecutive year. The first revision of the world sugar balance for October 2009 to September 2010 puts world production at 159.887 million tonnes, raw value, up by 6.911 million tonnes or 4.5% from the last season.

The global use of sugar is expected to reach 167.134 mn tonnes. Therefore, the world statistical deficit is expected to reach 7.247 million tonnes as against 8.404 million tonnes projected in September 2009.