Increase in Sugar cess

Q.  On which of the following agricultural product government is increasing the cess by almost Rs 100 per quintal to fund its ambitious programme of paying Rs 4.50 per quintal directly into the bank accounts of growers?
- Published on 15 Jan 16

a. Coffee
b. Tea
c. Sugar
d. Tobacco

ANSWER: Sugar
 
- The Sugar Cess (Amendment) Bill, 2015 would give powers to the Centre to raise the ceiling on such a cess from the existing Rs 25 per quintal to Rs 200 per quintal.
- At present, the central government levies a sugar cess at the rate of Rs 24 per quintal, while the ceiling was at Rs 25.
- The amendment to the Act will enable it to raise the actual cess to Rs 124 per quintal as then the ceiling or the power to impose it would be limited to Rs 200 per quintal
- No increase in retail price is seen as cess would kick in only when retail price drops.

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