To control the uncontrolled rise in sugar prices ahead of the holiday season, the government has taken decisive measures and introduced changes to the rules concerning the import of raw sugar. The norms for importing raw sugar have been adjusted to limit the accumulation of sugar stocks.
Due to the increase in sugar prices, amendments were made to the import conditions on Monday. It is now mandatory that raw sugar imported into the country under the Tariff Rate Quota (TRQ) must be converted into white/refined sugar and sold on the domestic market within two months.
Previously, a different rule was in effect, which required imported raw sugar to be processed in a reasonable timeframe and in advance so that it could be sold on the domestic market until October 31, 2026. However, the new, amended rules establish a stricter deadline—two months for processing and sale.
The notification regarding the change in sugar import rules was issued by the Ministry of Commerce and Industry. The goal of these changes is to prevent the storage of imported raw sugar, i.e., speculative stockpiling. Furthermore, it is necessary to ensure that consumers receive relief as soon as possible after the import.
The government has permitted the import of 10 million tons of sugar until October 31 and has set limits on stocks for soft drink and ice cream manufacturers, as well as related traders and wholesale buyers. The state received requests from all states in the country to take action against speculation and illegal trade of sugar from the central authority.
According to official data, the average retail price across India on Monday was 63.05 rupees per kilogram, which is 29% higher than 48.73 rupees per kilogram in the previous month. The maximum retail price was set at 75 rupees per kilogram. Food Secretary Sanjeev Chopra noted that the prices of factory-produced sugar rose from 47-48 rupees per kilogram to 62 rupees per kilogram in just seven to ten days, which he called a startling jump.
Regarding the reasons for the rise in sugar prices, Niraj Shirgarkar, Chairman of the Indian Sugar Manufacturers Association (ISMA), stated that there is no sugar shortage in India, and current stocks are sufficient. He explained that the price increase is linked to a low sugarcane harvest due to weather conditions, high extraction rates in Maharashtra, and issues related to varieties in Uttar Pradesh.
Additionally, sharp demand due to the festive season, reduced supply from Brazil, as well as speculation and stock accumulation are significant factors. Wholesale buyers began accumulating stocks, which removed sugar from the market and led to price increases.
