The stock frozen 20 per cent upper limit of circuit filter to Rs 9,672.50, after the prices of sugar rose sharply. Ex-mill sugar price in Uttar Pradesh is at a record high of Rs 3,700 a quintal. The prices have gone up 7-8 per cent in a month, though crushing season is on.
In last one year the sugar prices is almost doubled. The Union government has allowed duty-free import of raw sugar to tide over the domestic production shortfall. In the 2008-09 season ending October 2009, domestic sugar output fell 42 per cent to 15 million tonne, causing retail sugar prices to more than double. Currently, sugar is selling at Rs 42-43 a kg in retail.
Shares fall as much as 8%