Amid rising sugar prices in the country, the government has made a significant decision by allowing the import of raw sugar up to 10 million tons without customs duties until October 31, 2026. This move may help stabilize sugar prices ahead of the festive season.
Meanwhile, the opposition has claimed a serious sugar shortage, asserting that the government has converted sugarcane into ethanol.
In recent days, there has been a sharp increase in sugar prices across the country; in some places, it was selling for 60-65 rupees per kilogram, whereas previously its cost was around 45-50 rupees per kilogram.
The government took this measure before the start of the festive season. According to the Directorate General of Foreign Trade (DGFT) notification, the import of 10 million tons of raw sugar under the tariff quota system will be done with zero duty, meaning no customs payments for the sugar import.
This step is important as it opens the way for importing large volumes of sugar amid rising domestic prices. However, the sugar industry in India believes this decision should not be seen as a response to a sugar deficit.
The Indian Sugar and Bioenergy Association (ISMA) emphasized that there is no sugar deficit in the country. The organization also noted that processing plants have sufficient stock to meet domestic demand until the start of the new season.
According to this industry body, the recent rise in sugar prices is due not to fundamental market reasons, but rather to speculative operations and panic buying that occurred before the holidays.
ISMA hopes that the new sugar season will begin 10-15 days earlier than usual, which will allow new produce to reach the domestic market faster. Thus, the possibility of imports may provide additional support during the months when demand for sugar usually increases.
ISMA described this step as a 'preventive measure,' whose goal is not to replenish supply shortages but to provide relief during the main holiday period. The government's decision is also viewed as an attempt to prevent sharp price increases in the coming months, as it signals the possibility of additional supplies entering the domestic market if necessary, which could reduce incentives for stockpiling and panic buying.
Former Delhi Mayor Arvind Kejriwal linked the rise in sugar prices to ethanol production. He posted on X, stating: 'It has just come to light that the central government has zeroed out import duties on sugar to stimulate sugar imports. Sugar prices in the country have skyrocketed because of a severe sugar shortage.'
Kejriwal accused the government of producing ethanol from sugarcane that would otherwise be used for sugar production. He stated: 'Modiji has turned sugarcane, which is used to make sugar, into ethanol. Modiji produced ethanol from approximately thirty million tons of sugarcane. The Prime Minister says he saved foreign exchange by producing ethanol and is now using that foreign exchange to import sugar.'
