Sugar costlier by up to Rs 2 per kg on import duty hike
New Delhi: Sugar prices on Tuesday further rose by up to Rs 2 per kg to Rs 33.40 at the wholesale market in the national capital following a slew of measures by the government including hike in import duty to bail out the industry.
Taking cues from the wholesale market, retail prices also increased by Rs 2 per kg to Rs 39-40 per kg.
Traders said that prices may further go up in the coming days as millers are not releasing the stock in anticipation of better returns.
There is more than 60 percent drop in arrivals to 5,000 bags of 100 kgs in the wholesale market
today as against 13,000 bags yesterday, they added.
Traders mentioned that prices are on the rise also because of increase in summer demand for the
sweetener by ice-cream and soft drink makers.
In the mill gate section, Bulandhshar traded Rs 2 higher at Rs 33.40 per kg, followed by Sakoti by Rs 1.45 to Rs 32.70 per kg, Simbholi by Rs 1.15 to Rs 33.40 per kg.
In the spot market segment, M-30 rose by Rs 1.20/1.40 to Rs 34.50-36.00 per kg and S-30 moved up by Re 1/Rs 1.20 to Rs 34.00-35.50 per kg.
Mill delivery M-30 edged higher by 70 paise to Rs 32.30-33.70 per kg and S-30 by Re 0.60-Rs 1.10 to Rs 32.00-33.50 per kg.
In order to bail out sugar mills that are unable to pay Rs 11,000 crore dues to sugarcane growers, the
government had yesterday decided to hike import duty on sugar to 40 percent from the current 15 per cent, while it extended export subsidy of Rs 3,300 per tonne till September this year.
That apart, the government decided to provide additional interest-free loans of up to Rs 4,400 crore especially for clearing cane arrears.
Yesterday, the wholesale price of sugar rose by Rs 60 paise per kg following the government's decisions.
India is the world's second largest sugar producer but the largest consumer.
Following are today's quotations in Rs. Per kg:
Sugar ready: M-30 Rs 34.50-36.00; S-30 Rs 34.00-35.50.
Mill delivery: M-30 Rs 32.30-33.70; S-30 Rs 32.00-33.50.
Sugar mill gate (including duty): Mawana 33.00; Kinnoni 33.80; Asmoli 33.00; Dorala 33.10;
Budhana 32.90; Thanabhavan 32.80; Dhanora 32.85; Simbholi 33.40; Modi Nagar Rs 32.80;
Khatuli 33.40; Dhampur 32.90; Ramala 32.25; Bulandshahr 33.25; Anupshahr 32.20; Baghpat
32.35; Morna 32.00; Sakoti 32.70; Chandpur 32.95 and Nazibabad 32.20.