Sugar Association seeks removal of octroi, APMC cess to curb prices

The Bombay Sugar Merchants' Association has urged the Maharashtra government to consider removal of octroi duty and APMC cess, which will help in bringing down  sugar prices, a top industry official said."We have urged the Maharashtra government to remove the two per cent octroi and one per cent APMC cess, which will help in bringing down sugar prices," The Bombay Sugar Merchants' Association, Hon Secretary, Mukesh Kuvadia, told PTI here.Representations to the effect have already been made to the state Chief Minister, Ashok Chavan, he said.This year both sugarcane and sugar production remained low and sugar price has shot up to Rs45 per kilogram in the retail market, Kuvadia said.During former chief minister Vilasrao Deshmukh's regime, the discontinuation of octroi duty and APMC market cess duringthe festival months of 2008 was beneficial in bringing downthe prices, he said. In Mumbai, sugar prices attract a two per cent octroi, which accounts to an additional Rs70/80 cost per 100 kg bag. The one per cent APMC cess also adds around Rs40 per bag. This means the people of Mumbai have to pay an additional Rs1.25 to Rs1.50 per kilogram, more than the people of otherplaces in Maharashtra, the Association said in a statement.The Association also welcomed the Union food and agriculture minister, Sharad Pawar's decision to introduce the system of proportionate weekly sale of sugar by sugar factories to curb rising prices.Following the announcement, sugar prices have come down considerably and it is hoped that if the same procedure continues, prices would settle around Rs35-36 per kilogram in the wholesale market, Kuvadia said.