President gives assent to The Sugar Cess (Amendment) Bill, 2015

President Pranab Mukherjee has given assent to the Sugar Cess (Amendment) Bill, 2015 to raise the ceiling of a cess as an excise duty on the production of sugar.
The bill was first passed by Lok Sabha after it was declared a money bill. President gave his assent as per provisions of Article 111 of Constitution after the bill was not returned by the Rajya Sabha to the Lok Sabha within 14 days of its consideration as per constitutional provisions.
Key facts

  • The amendment Bill seeks to amend the The Sugar Cess Act, 1982 which provides legal provision for the imposition of a cess as an excise duty on the production of sugar.
  • The Bill proposes to increase this ceiling of sugar to Rs 200 per quintal from existing Rs 25 per quintal specified in the principal Act.
  • The principal Act empowers central government to fix the rate of sugar cess from time to time.

Implications of hike in sugar cess
It would lead to increase in the accruals to the Sugar Development Fund (SDF) which in turn would facilitate rehabilitation and modernisation of sugar mills and thereby helping cane growers. In present scenario, it will help in revival of stagnant sugar economy by helping cash-starved mills and sugarcane growers.



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