"Imports of white sugar are putting pressure on prices. The government may raise import duty to protect local mills," said a Mumbai-based dealer. India is expected to decide on raising the import duty on the sweetener by year-end, Food Minister K.V. Thomas said on December 13, as lower prices in the world market made room for such imports in the past two months.
Sugar mills in key producing states agreed to raise cane procurement prices by more than 15 percent for 2012/13 season started on October 1. Sugar eased by 4 rupees to 3,280 rupees per 100 kg at the Kolhapur spot market in the top-producing Maharashtra state. Demand for sugar from bulk consumers like cool drink and ice cream makers usually drops in India during the winter season. Indian sugar mills produced 4.9 million tonnes between October 1 and December 15, up 2 percent from a year earlier.