Archive · 11 Sep 2026
India Orders Sugar Mills to Report Data, Stabilize Prices
India’s government is worried that sugar prices are rising before the festival season.
It has asked sugar mills to report how much sugar they produce and sell each month.
Officials also want mills to keep enough sugar available in shops.
India has allowed 1 million tonnes of sugar to enter the country without import taxes.
Applications have already been submitted for 0.8 million tonnes, including sugar from Brazil.
The government says hoarding and lower production helped push prices higher.
Sugar companies say traders and large buyers made speculative purchases, but they say there is no shortage.
Sugar production fell while consumption rose slightly.
From September, mills will release their allocated sugar in two stages each month.
The Food Ministry ordered sugar mills to submit accurate monthly production and sales data.
Officials urged mills to maintain festive-season supplies and said price increases during festivals were unjustified.
India has received applications to import 0.8 million tonnes under a duty-free quota of 1 million tonnes, mainly from Brazil.
Average retail sugar prices reached Rs 60.2 per kilogram, while prices exceeded Rs 65 in some urban centres.
From September, a fortnightly allocation system will require mills to sell 40% of their allocation in the first week and the rest in the following week.
- Who
- The Department of Food and Public Distribution, sugar mills, sugar producers, traders and bulk consumers are involved.
- What
- The government is requiring monthly production and sales reporting, arranging duty-free imports and changing sugar allocation rules to improve supplies and stabilize prices.
- When
- The instructions were announced on Thursday; the new fortnightly allocation system begins in September, ahead of the 2026-27 sugar season.
- Where
- India, with imports planned from Brazil.
- Why
- The measures aim to maintain festive-season supplies and control prices after lower domestic production, weather-related damage, high global prices and suspected hoarding or speculative buying.
Government assessment
Sugar industry assessment
Cause of the price rise
Government assessment
The government attributed the increase to lower domestic production, weather-related damage, festive demand, high global prices and hoarding by some producers.
Sugar industry assessment
The industry attributed the spike to speculative buying by traders and bulk consumers, as well as lower-than-estimated production.
Availability of sugar
Government assessment
The government is seeking imports and tighter reporting and allocation rules to ensure adequate supplies.
Sugar industry assessment
The industry said there is no shortage of sugar despite the recent price increase.
Need for intervention
Government assessment
The government said prices should remain stable during festivals and introduced imports and fortnightly allocations to improve market supply.
Sugar industry assessment
The industry characterized the increase as driven by short-term market factors and speculative activity rather than an underlying shortage.
- Average retail price
- Rs 60.2 per kilogram on Thursday, up 39% year-on-year and 19% month-on-month.
- Urban prices
- Retail sugar prices have exceeded Rs 65 per kilogram in some urban centres.
- Duty-free import quota
- India allowed duty-free imports of 1 million tonnes of sugar.
- Import applications
- Applications had been received for 0.8 million tonnes.
- 2025-26 production
- Production was around 28.1 million tonnes, down from 35.8 million tonnes in 2021-22.
- Consumption
- Industry estimates put consumption at 28.7 million tonnes, compared with 27.3 million tonnes over the previous five-season period.
- New allocation system
- From September, mills must sell at least 40% of their allocation in the first week and the remainder in the following week.
