Domestic sugar prices are likely to remain firm in the near term, given the tight stock position in the domestic and global markets. Although the govt has allowed duty free raw sugar imports of 0.5 million tonnes, prices are unlikely to be adversely impacted over the next couple of quarters. Pressures on stock position and prices cannot be ruled out in the forthcoming sugar year 2018, if further import of duty-free sugar is permitted. Although ICRA anticipates a 3-4% decline in domestic sugar consumption during the Sugar Year 2017,this is unlikely to affect prices, at least during Sugar Year 2017, as the impact of the decline in the domestic sugar consumption is likely to be more than offset by a higher-than-expected decline in production.