Sugar prices climb on brisk demand, thin supply

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NEW DELHI: Sugar prices staged a smart comeback at Rs 150 per quintal at the wholesale market in the Indian capital on Friday on heavy buying by stockists and consumers amid halt in supplies from mills after government allowed export of two million tonnes of sugar on Thursday.
Marketmen said the government’s decision to allow mills to export of two million tonnes of sugar until the end of the 2017-18 marketing year, in order to clear surplus stocks and improve cash flow to millers for making payment to sugarcane farmers, led to the sharp upsurge in sweetener prices.
In addition, the government had also allowed export of white sugar till September 2018 under the Duty Free Import Authorisation (DFIA) scheme, under which exporters are allowed to import sugar at zero duty within three years, too gave upward push to the faltered prices, they quoted.
Brisk buying by stockist and bulk consumers such as soft-drink and ice-cream makers to meet ongoing summer demand also bolstered the uptrend in sugar prices, they added.