The Sugar Cess (Amendment) Bill, 2015 was introduced in Lok Sabha by Mr. Ram Vilas Paswan, Minister of Consumer Affairs, Food and Public Distribution on December 11, 2015. The Bill proposes to amend the Sugar Cess Act, 1982.

The principal Act provides for the imposition of a cess as an excise duty on the production of sugar. The rate of sugar cess is notified by the central government from time to time. The principal Act specifies the ceiling on the cess at Rs 25 per quintal under the Act. The Bill proposes to increase this ceiling to Rs 200 per quintal of sugar.

The cess has been proposed to be increased in order to meet the government’s expenditure on interventions to ensure payment of dues to sugarcane farmers.