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Low Sugar Stocks Raise Prospect of Continued Export Ban

Low Sugar Stocks Raise Prospect of Continued Export Ban
Sugar export ban may continue as stocks dips to decade low · financialexpress.com

Sugar companies have less sugar stored than they have had in more than ten years.

This happened because sugar production fell while people used slightly more sugar.

The government had banned sugar exports to protect supplies at home, but that ban ended on Wednesday.

Officials may bring the ban back because stocks are low.

The government also allowed some raw sugar to be imported without duty.

It is checking whether businesses are storing too much sugar or people are hoarding it.

The government says using sugar to make ethanol was not the main reason for higher prices.

The sugar industry says speculation and lower production helped push prices up, but it says there is no actual shortage.

Key facts

Opening stocks
3.75 million tonnes at the start of the 2026-27 season.
Previous opening stocks
5 million tonnes on October 1, 2025.
2025-26 production
About 28.1 million tonnes, according to industry estimates.
Consumption
Approximately 28.7 million tonnes in 2025-26.
Import measure
The government permitted duty-free imports of 1 million tonnes of raw sugar.
Retail price
Rs 56.02 per kilogram on Wednesday; 20% higher year-over-year and 12% lower month-on-month.
Revised production estimate
ISMA revised gross production excluding ethanol diversion to about 30.9 million tonnes from 34.5 million tonnes.

Quotes

Government official note

An official government note addressing the relationship between ethanol production and sugar prices

“The share of sugar diverted for ethanol has declined from around 12% in 2022-23 to around 9% in 2025-26. Moreover, nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize.”
financialexpress.com

Sources

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