Sugar prices rise by Rs60 per quintal

In the national capital, sugar ready M-30 and S-30 traded
 higher at Rs3,320-3,460 and Rs3,300-3,430 as against
 previous levels of Rs3,270-3,400 and Rs3,250-3,380 per quintal.

New Delhi: Sugar prices rose up to Rs60 per quintal in the country’s leading wholesale markets on stockists buying after the government raised import duty on the sweetener to 40% besides additional interest-free loan of Rs4,400 crore for mills. Further, increased offtake by bulk consumers to meet summer season demand also influenced prices.


In the national capital, sugar ready M-30 and S-30 traded higher at Rs3,320-3,460 and Rs3,300-3,430 as against previous levels of Rs3,270-3,400 and Rs3,250-3,380 per quintal. Thus showing a rise of Rs50/60 per quintal. Fears that sugar prices may rise further in the wake of government’s decision to discourage import by raising duty to 40% and improve funds liquidity for the domestic sugar mills, stockists were seen enlarging positions, said sugar traders. They said if monsoon remains subdued, prices are well set to rise further in coming days.

“The hike in duty will support domestic sugar industry and make imports costlier”, said a wholesale sugar trader in the national capital. The loan will be provided to cash-starved sugar mills to make payments to cane farmers, while the import duty on sugar will be hiked to 40% from the current 15%, food and civil supplies minister Ram Vilas Paswan said.

In order to bail out sugar mills that are unable to pay Rs11,000 crore dues to sugarcane growers, the government also extend subsidy of Rs3,300 per tonne on export till September this year. In line with general trend, sugar mill delivery M-30 and S-30 followed suit and traded higher at Rs3,160-3,300 and Rs3,140-3,240 against last close of Rs3,130-3,245 and Rs3,110-3,225 per quintal, respectively. In the millgate section, Mawana, Kinnoni and Asmoli also ended higher at Rs3,230, Rs3,300 and Rs3,250 from previous levels of Rs3,160, Rs3,240 and Rs3,210 per quintal, respectively.

At Mumbai’s Vashi wholesale market, small sugar (S-30) advanced by Rs25 per quintal to Rs3,030/3,152 from last Saturday’s closing level of Rs3,005/3,152. Medium sugar (M-30) climbed by Rs15 per quintal to Rs3,152/3,316 as against last week’s level of Rs3,152/3,301.

By livemint