A sharp fall in the price of sugar on the international market had worried the national federation of cooperative sugar factories and other sugar industry bodies and they had pressured the government to raise the import duty on sugar.
Bowing to pressure, the central board of excise and customs has officially announced a spike from 10 percent to 15 percent in the import duty on sugar.
Sources say the recent rising imports of sugar had begun affecting domestic prices.
Earlier a group of senior cabinet ministers including Chidambaran and Sharad Pawar had discussed the issue in a meeting and recommended a hike in the import duty.