Liquor industry seeks cut in import duty on molasses

The liquor industry has also called for waiver of the excise duty on molasses which stood at Rs 500 per metric tonne.

The liquor industry has demanded a cut in import duty on molasses to bring it at par with the duty levied on the industrial alcohol companies and also called for waiver of the excise duty on molasses which stood at Rs 500 per metric tonne.

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"Since the cost of domestically produced molasses has gone up from Rs 1,000 metric tonne last year to Rs 5,000 per tonne, it is our submission that the central excise duty of Rs 500 per tonne levied on molasses be waived," Association of Distillers, Brewers and Vinters of India (ADBVI) director general Sushil Haksar said in a pre-Budget demand.

ADBVI also asked the Government to include alocoholic beverages in the list of tradeable commodities among SAARC countries.

At the January 2004 SAARC summit, the South Asia Free Trade Agreement (SAFTA) was signed, permitting free flow of goods among SAARC nations, but liquor was kept out of the purview of the tradeable goods.

All alcoholic beverages, including beer, whisky, rum, vodka, gin and wine must be included in the list of tradeable commodities among SAARC countries in view of the trade potential and also its backward linkages with agriculture, he said.

ADBVI said the additional customs duty on bottled in origin (BIO) import should be retained for at least five years.

In the 2004 interim Budget, basic customs duty was cut to 150 per cent from 166 per cent and special additional duty of four per cent was also abolished.