We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry. current time
Sugar Prices Rise as India Moves to Import 1 Million Tonnes Duty-Free
India has opened another front in its efforts to bring sugar prices under control, allowing one million tonnes of raw sugar to enter the country without import duty. The move, valid until October 30, comes at a time when domestic prices have climbed sharply and concerns over supplies are growing ahead of the new crushing season.
The imports will be routed through the tariff rate quota (TRQ) system. The government has also offered mills and traders a one-time opportunity to shift eligible sugar brought in under the advance authorisation route into the TRQ framework. The objective is clear: increase availability in the domestic market without allowing imported sugar to flow back into export channels.
The timing is important. Retail sugar prices in Delhi have touched record levels, while international raw and white sugar prices have also moved sharply higher. Although imports will add to supplies, elevated global prices mean the benefit to domestic consumers may be limited unless international values ease.
The government has simultaneously moved to prevent large institutional buyers from building excessive inventories. From September 1 to November 30, buyers consuming more than 10 tonnes of sugar a month will face a 15-day stock limit. The measure covers sectors such as beverages, confectionery, food processing and sweets.
Another step could help bridge the supply gap before imports become necessary on a larger scale. Mills starting crushing in October will be permitted to sell sugar produced during that month in October and November, bringing early-season supplies into the market sooner.
The pressure is understandable. Sugar stocks at the end of the current season are expected to fall sharply from last year’s level, while domestic consumption remains high. At the same time, sugarcane acreage for the 2026-27 season has slipped slightly.
The months ahead will be crucial for the sugar market. If early crushing delivers fresh supplies and imports arrive on schedule, domestic prices could begin to cool. But with global prices firm and consumption continuing to rise, the market may remain sensitive to any disruption in production or availability.
For now, the government’s strategy is centred on bringing more sugar into the market while discouraging stock accumulation a combination that could determine whether the current price rally loses steam before the next season gathers pace.
