The average sugar price in India has shot up by more than 15 per cent in a month to Rs 55.7 per kilogram on August 20. In Delhi, retail sugar prices have crossed Rs 60 per kg. Prices have climbed more than 20 per cent in a year, according to government data.
Government Takes Action Amid Sugar Production Decline
In response to a significant rise in sugar prices, the government has authorized the duty-free import of 10 lakh metric tonnes (LMT) of sugar for the first time in a decade. To curb hoarding, it has also restricted bulk consumers and dealers from stocking excessive amounts and mandated physical verification of stocks at sugar mills.
Current projections indicate that sugar production this season will reach approximately 306 lakh metric tonnes (LMT), a decline from the initial estimate of 343 LMT provided by sugarcane-growing states. The government attributed this reduction to the impact of Red Rot and Top Borer diseases affecting sugarcane, alongside waterlogging caused by heavy rainfall.
Despite the lower production figures, the government assured that there are sufficient sugar stocks to meet domestic demand until the new crushing season begins in October. However, the exact quantity of these stocks was not disclosed.
Additionally, on August 21, the government reported that around 9 percent of the total sugar produced in the country has been redirected for ethanol production in the 2025-26 cycle. Notably, nearly three-fourths of the ethanol produced comes from grains, particularly maize.
