India
oi-Ashish Rana
Sugar prices have rise in all over India ahead of the festival season, allowing the government to make duty-free imports of 10 lakh metric tonnes of raw sugar. The move comes at the time when domestic prices have risen sharply, while concerns over lower opening stocks and strong demand during the festival period added to pressure market.
Indian sugar prices rose sharply to Rs 5,400-5,500 per quintal, prompting the government to allow 10 lakh metric tonnes of duty-free raw sugar imports until October 31, 2026, and impose stock limits on bulk buyers and dealers until November 30.
All-India Sugar Prices Rise Sharply
All-India average ex-mil sugar prices have increased to around Rs 5,400-5,500 per quintal 18 August, compared to Rs 3,900 per quintal a year before according to industry data.
Prices of sugar vary across states and their local markets. Metro cities like Delhi, Mumbai have almost got 70-75 Rs per KG. Although, as we mention the rates differ in the different places and different states. Earlier the rate was around 45-50 Rs per KG according to previous year data.
Why Are Sugar Prices Increasing?
The government has connected the recent hike in price to expected domestic production, crop damage, higher festive demand and rising global sugar prices.
Sugarcane crops were also affected by diseases including Red Rot and Top Borer in several areas, while excessive rainfall and waterlogging also affected the production. The government has made it clear that the price rise of sugar can’t be just connected with diversion of sugar for ethanol.
Centre Allows 10 Lakh Tonnes Duty-Free Imports
The Directorate General of Foreign Trade has allowed 10 lakh tonnes of duty-free sugar imports under the Tariff Rate Quota system till 31 October 2026.
The DGFT said, “The import policy for raw sugar is amended to allow 10 lakh MT of duty-free imports under Tariff Rate Quota (TRQ) till October 31, 2026.”
This is first such duty-free raw sugar import decision in a decade. Applications for the quota will be accepted from 21 August to 28 August from sugar mills and refiners with functional refining capacity.
Government Tightens Sugar Stock Limits
The central government has introduced stockholding restrictions for large institutional sugar buyers. From 1 September, bulk consumers using more than 10 tonnes of sugar in a month will not be allowed to hold stock for more than 15 days.
The measure covers confectioners, soft drink manufacturers, food processors, sweet makers and other institutional buyers will remain in force till 30 November.
The government has also capped the sugar stocks held by dealers at 4,000 quintal for only 30 days with the order effect from 1 August to 30 November.
