New Delhi: On Friday Sugar stocks cut down between 2-10 per cent following the declaration of a 20 per cent export duty on sugar to increase domestic supply and check prices which are decision high at Rs 40/kg. The move comes at a time when prices have surged harshly in various commodities including tomato, wheat and pulses. The Finance Ministry conveyed that, to keep the domestic prices of sugar under control, the government has decided to impose export duty of 20 per cent on the export of raw sugar, white or refined sugar. A decision has been notified by the Central Board of Excise and Customs (CBEC). The duty has been forced to limit exports following pointed rise in global prices. The duty however, lower than 25 per cent proposed by the Food Ministry.
Bajaj Hindustan shares fell nearly 5 per cent, Oudh Sugar drooping 8 per cent, while Ponni Sugars cut down over 10 per cent. Shree Renuka Sugar and Balrampur Chini were behind 4 per cent and 3 per cent respectively. Government officials conveyed that, the duty will help limit sugar exports, which had gained pace, following a sharp rise in global prices. With imposition of export duty, sugar exports will be unviable and is likely to restrict exports. Industry experts however said that the export duty is unlikely to put a check on domestic prices. India is the world's second largest sugar producer after Brazil has exported 1.6 million tonnes of sugar so far in the 2015-16 marketing year (October-September). Further exports are unlikely to take place with this decision.