India will raise its import duty on sugar to 40 percent from 15 percent, as the government tries to revive business at mills that owe farmers around $1.84 billion, the food minister said on Monday.
Global experts last week gave the same forecast.
The state is struggling to provide drinking water to thousands of people.
In Jan the country raised the import tax on the yellow metal by 2 percentage points.
The current cost of the food subsidy is Rs 1 trillion.
Rising rupee, local freight make export less competitive.
Africa, Middle East top destinations for Indian wheat.