High oil price may support sugar industry; output to surpass all-time high

The Centre had doubled sugar import duty to 100%, scrapped export duty to check falling prices

Domestic sugar sector, hit by slipping prices and mounting cane arrears pegged at Rs 200 billion, is keeping high hopes on a bump in oil prices coupled with an expected all-time high production of 32 million tonnes in 2017-18 to ride over the financial mess.

High crude oil prices could prompt Brazil, the world's largest sugar producer to divert 3-5 million tonnes of ethanol for fuel, which would ease the market glut of sugar in the coming months, pushing up global prices, industry sources said.

"Besides, Pakistan has estimated sugar output to fall by about 2 million tonnes which means