In the wake of falling sugar prices, the Centre on Thursday capped the quantity of sugar that mills can release in the market in February and March, an official notification said here.

The order comes days after the government hiked import duty on sugar to 100 per cent mainly to check shipments from Pakistan, which gives subsidies to exporters.

According to the new notification, sugar mills have to hold, at the end of February, 83 per cent of sugar stock they had by 31 January and at end of March, retain 86 per cent of the stock they had on February 28, the notification said.

The move is expected to arrest a glut in the market, which would otherwise lead to further plummeting of sugar prices. According to an industry source, sugar is currently retailing at ₹6 to ₹7, lower than the ex-mill gate price and the mills are already piling up losses.

Sugar production in the current sugar season 2017-18, beginning November last year, is projected to be 25.1 million tonnes, 30 per cent higher than the previous season.