According to a recent government decision, about 3-3.5 lakh tons of refined sugar held by Indian sugar processors is likely to enter the domestic market. These processors import raw sugar duty-free and then export it after processing.
This influx of goods could potentially improve sugar availability in the short term and contribute to price reduction.
An official representative noted that the sharp rise in sugar prices at mills, which increased from 48 rupees per kilogram to 58-60 rupees per kilogram in just a few days, was primarily caused by speculation and inventory accumulation.