Sugar prices are rising again, up over 10% in the past six days, amid tight supplies ahead of Diwali, when demand for sugar typically rises as households and sweetmakers prepare for the festive season. Ex-mill rates in Uttar Pradesh rose to ₹ 5,200 per quintal on October 12 from ₹ 4,600 on October 6 (up 13%). The prices in Maharashtra rose to ₹ 5,100 from ₹ 4,350 over the same period (up 17%), according to local traders.
Only a few mills may begin operations early, but the additional production is unlikely to be substantial if sufficient cane is unavailable. It also imposed stockholding limits on dealers to discourage hoarding and ensure sugar moved through the supply chain. The Centre has been taking measures to increase availability and curb hoarding, including permitting duty-free imports of 1 million tonnes of raw sugar, imposing stockholding limits on dealers and restricting bulk consumers’ purchases from the domestic open market. A meeting with Karnataka farmers on October 12 failed to resolve differences over early crushing as farmers have demanded a higher support price citing rising production costs and an increase in the minimum selling price of sugar from ₹ 31 to ₹ 50 per kg. It permitted duty-free imports of 1 million tonnes of raw sugar to augment domestic supplies.
The limits were tightened further in September and October. The Centre has ordered weekly stock disclosures by bulk consumers and physical verification of stocks at mills. The government also restricted bulk consumers to 15 days of consumption for sugar purchased from the domestic open market, while allowing them to hold up to 30 days of stocks if the additional quantity was sourced exclusively from imported sugar under specified schemes.
