The government of India has raised the import tax on sugar to 40 per cent from 25 per cent boost the falling local prices and to protect local farmers.

The government has also laid the tax on imports of raw sugar which refiners turn into white or refined sugar to sell in the world markets.

“The government has, from time to time, provided financial assistance to the industry to overcome liquidity constraints such as providing interest free working capital loans and incentives for raw sugar exports. However, due to adverse price sentiments plaguing the sector, problems of cane dues arrears persist. Hence we are announcing a slew of measures for the sector,” the food ministry said.