Sugar stocks jump as food ministry proposes 25% duty on export

Sugar stocks surged Friday on government’s impetus to boost sugar in domestic market. The Food Ministry has proposed to impose 25 percent duty on export of sugar to ensure sufficient supply of the sweetener in the domestic market, Union Minister Ram Vilas Paswan said. International prices of sugar are rising and therefore traders may increase the export of sugar to make profit, Paswan said. He added that this move will keep sufficient availability of sugar in domestic market and the price will be under control. According to trade sources, sugar exports have become viable now as global prices have increased by 50 percent in last three months due to disruption in supply from Brazil. Meanwhile, Sugarcane dues to farmers from mills, have come down to Rs 6,225 crore in the ongoing sugar season. Cane arrears had touched Rs 21,000 crore in April of the 2014-15 sugar season (October-September) as sugar prices were subdued due to surplus sugar production for last five years. “Sugarcane price arrears for sugar season 2015-16 have come down to Rs 6,225 crore. As on today, about 87 percent cane dues have been paid for the season. During the same period of last year these dues were Rs 19,437 crore,” Food Ministry said in a statement.
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