1 week ago
Brazilian Sugar Imports May Reach India Before October 15
India is allowing some sugar to be bought from other countries without an import tax.
Brazil is the main country that may provide this sugar because Thailand does not have enough to sell.
Some shipments might reach India before October 15, but nobody yet knows exactly how much will arrive.
Ships from Brazil usually take 40 to 45 days to reach India.
Sugar prices had risen sharply, so the government is also checking warehouses and limiting how much traders can hold.
These actions have helped some sugar prices fall.
The sugar mills federation says India has enough sugar for the near future.
A government minister, however, said disease and El Niño-related conditions have created concerns about production and supplies.
India has allowed duty-free imports of up to 1 million tonnes of raw sugar to ease price pressure.
Brazil is the only practical source identified, while Thailand faces a supply shortfall of its own.
Some Brazilian shipments may arrive before October 15, but the quantity depends on approvals, shipping and port congestion.
NFCSF estimates 279 lakh tonnes of net sugar production for 2025-26, with stocks covering near-term domestic demand.
Government stock limits and warehouse inspections have helped reduce ex-mill prices by about ₹5 per kg.
- Who
- The Indian government, Consumer Affairs Minister Pralhad Joshi, Food Secretary Sanjeev Chopra, the National Federation of Cooperative Sugar Factories and its president Prakash Naiknavare, sugar mills, traders and consumers.
- What
- India is pursuing up to 1 million tonnes of duty-free raw sugar imports, mainly from Brazil, while tightening controls on stocks and trading.
- Where
- Imports would arrive at Indian ports. Maharashtra, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh are expected to receive them sooner than northern states.
- When
- The import authorization was announced on August 20; some shipments may arrive before October 15, and the October 31 arrival deadline may not be enforced strictly.
- Why
- The measures aim to improve domestic availability and contain prices after sugar prices rose 24% in one month amid supply concerns.
NFCSF supply assessment
Government supply concerns
Need for imports
NFCSF supply assessment
NFCSF president Prakash Naiknavare said stocks should cover domestic demand and that he did not expect a panic situation.
Government supply concerns
The government is pursuing imports as a temporary measure ahead of the festival season because of higher prices and supply concerns.
Causes of production pressure
NFCSF supply assessment
NFCSF has maintained its 279-lakh-tonne production estimate and expects early crushing to bring fresh supplies by November.
Government supply concerns
Consumer Affairs Minister Pralhad Joshi linked lower production concerns to an unexpected red rot disease outbreak and El Niño conditions affecting agricultural production.
Reason for price increases
NFCSF supply assessment
Naiknavare said stock controls and inspections were helping prices fall and that cooperative mills had largely stayed within their quotas.
Government supply concerns
Food Secretary Sanjeev Chopra accused parts of the industry of hoarding stocks and raising prices, leading to tighter limits and monitoring.
Key facts
- Duty-free allowance
- Up to 1 million tonnes of raw sugar may be imported without customs duty.
- Likely supplier
- Brazil is identified as the only practical source; Thailand is facing its own shortfall.
- Shipping time
- Sugar shipments from Brazil typically take 40-45 days to reach Indian ports, followed by inland transport to mills.
- Price increase
- Retail and wholesale sugar prices rose 24% in one month to ₹56-60 per kg.
- Production estimate
- NFCSF estimates 279 lakh tonnes of net sugar production for the 2025-26 season, excluding 24 lakh tonnes diverted to ethanol.
- Available stocks
- Opening stocks for the 2026-27 season are estimated at 35 lakh tonnes against monthly domestic demand of about 22 lakh tonnes.
- Export restrictions
- India shipped about 8 lakh tonnes against a permitted 20 lakh tonnes and banned sugar exports until September 30.
Quotes
Prakash Naiknavare
President of the National Federation of Cooperative Sugar Factories
“So, it is difficult to put a number on how much can arrive before October 15th, but the possibility of some shipments arriving by then is good, but quantifying the volume was difficult, given the process involved, from DGFT approvals and allocation to letter of credit issuance and shipment scheduling, which also hinges on port congestion in Brazil.”
livemint.com
thehansindia.com
telegraphindia.com
“I believe they would be willing to consider shipments arriving after that date too. I don't think it will be treated as a hard and fast rule.”
livemint.com
thehansindia.com
telegraphindia.com
Pralhad Joshi
Union Consumer Affairs Minister
“Because of the red rot disease, which was very unexpected, and El Nino, overall agricultural production, including sugar, has come down not only in India but globally…we are very concerned about it, which is why we have immediately taken several measures.”
livemint.com
Sources
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