New Delhi: The Centre on Thursday allowed imports of 1 million tonnes of raw sugar at nil duty to bring down surging prices in the domestic market, which are adding to the inflationary pressure in the economy.
According to an official notification issued, the imports will be permitted till October 31, 2026. A customs duty of 100 per cent was being levied on raw sugar imports.
Data compiled by NCDEX showed that spot sugar prices in major markets across India touched a 16-year high of Rs 5,530 per quintal.
Retail sugar prices have climbed about 13 per cent year-on-year to Rs 52.30 a kg as on August 18, from Rs 46.34 a year ago, according to data gathered by the Consumer Affairs Ministry.
Demand for sugar normally rises between August and November, as demand firms up in the country in the run-up to major festivals, such as Ganesh Chaturthi, Dussehra, and Diwali. The imports are aimed at easing the burden on consumers.
The government has also cracked down to check hoarding and black marketing and imposed a stockholding limit on bulk consumers of sugar.
The crackdown also included a strict diktat from the government to all mills to furnish mill-wise and buyer-wise details of sugar sold between August 17-19.
Food Minister Pralhad Joshi, in a social media post, announced that bulk consumers using more than 10 tonnes of sugar a month will not be allowed to hold stock beyond what they would consume in 15 days.
The Food Ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, which covers confectioners, soft drink manufacturers, food processing units, sweetmeat sellers, and other institutional buyers.
The order will come into force from September 1 and remain in effect till November 30.
India’s actual net sugar production in the 2025-26 season that started on October 1, 2025, is around 27.9 million tonnes after accounting for 2.4 million tonnes of ethanol. The opening stock in 2025-26 is close to around 4.7 million tonnes.
Senior officials are of the view that even if prices come down by Rs 500 per quintal, Indian mills will still be in a profitable position as their production cost is around Rs 4,200-4,300 per quintal.
(IANS)
