India sugar prices firm up after govt imposes stock limits, hikes import duty.

Sugar prices have firmed up by nearly 15 per cent in the past one week on the back of the Centre’s move to impose stockholding limit on mills. The move coupled with the government’s decision to increase the import duty on sugar to 100 per cent from 50 per cent has helped strengthen sugar prices. According to OP Dhanuka, CMD, Riga Sugar Company Ltd, and past President of the Indian Sugar Mills Association (ISMA), the ex-mill prices are currently ruling around ₹3,550 a quintal. Sugar prices had declined by more than 25 per cent in the last two months and the ex-mill price was ruling at around ₹3,100 till about a week ago. Sugar prices, which were on a declining trend since the beginning of the marketing year on October 1, started firming up with the government asking sugar mills to offload only 17 per cent of their January stocks by February end and another 17 per cent of February stocks by the end of March.