“Prices have fallen due to an expected major turnaround in global sugar production and estimated surplus from all major sugar producing countries including India. Global sugar prices fell steeply when Brazilian production started in April,” the association said in a letter to the government.
The industry body said that there is no need to bring in any further sugar into the country. The government had allowed duty-free import of 5 lakh tonnes to keep domestic prices under check. “We earnestly request you to increase the import duty on sugar to the bound rate of 60%,” the letter said. However, importers said that imports are not likely.
“International market has slid 40% in the past four months while domestic prices have been steady,” said a trader with a Gurgaon-based firm, requesting not to be named.