1 week ago
India May Import Sugar After Nearly A Decade
India may buy about 1 million tonnes of sugar from other countries.
This would be the first such import in almost 10 years.
Sugar prices have risen because people are using more sugar than domestic factories are producing.
Prices are especially high before the festival season, when demand usually increases.
India had allowed some sugar exports earlier in the season.
Critics say those exports made the shortage worse.
The government has asked mills to crush sugarcane earlier and has tightened stock reporting.
Imports may lower prices, but experts say the reduction could be limited.
India is set to import around 1 million tonnes of raw sugar at zero duty to ease domestic prices.
Maharashtra ex-mill sugar prices have risen to ₹5,400–₹5,560 per quintal ahead of the festival season.
Net sugar production for 2025–2026 is estimated at 27.9 million tonnes after ethanol diversion, against consumption of about 28 million tonnes.
Critics say exports of up to 2 million tonnes were approved using faulty production estimates, with about 0.8 million tonnes shipped.
Projected closing stocks of 3.5–3.9 million tonnes would be below the 6-million-tonne reserve considered adequate for three months’ consumption.
- Who
- The Government of India, domestic sugar mills, exporters and industry officials are involved.
- What
- India is expected to permit imports of around 1 million tonnes of raw sugar at nil duty.
- Where
- The shortage and price increase are centered in India, with Maharashtra cited as the benchmark domestic market.
- When
- The move is being considered in March 2026, during the 2025–2026 sugar season and ahead of the festival period.
- Why
- Domestic stocks have fallen as consumption exceeded production, while earlier exports further reduced available supplies.
Critics Of Export Policy
Government And Mill Perspective
Cause of the shortage
Critics Of Export Policy
Industry critics argue that approving exports of 1.5 million tonnes, later raised to 2 million tonnes, relied on faulty production estimates and worsened the domestic shortage.
Government And Mill Perspective
Government sources have focused on maintaining availability by advising mills to advance crushing and tightening stock disclosure and reporting requirements.
Effect of imports on prices
Critics Of Export Policy
Market sources say importing 1 million tonnes may not significantly reduce domestic prices, with a decline of roughly ₹500 per quintal considered the best-case outcome.
Government And Mill Perspective
A senior industry executive said imported sugar could still provide a positive margin and that prices remaining above production costs could help mills pay sugarcane dues faster.
Key facts
- Planned import
- Around 1 million tonnes of raw sugar
- Import duty
- Zero, or nil duty
- Maharashtra price
- ₹5,400–₹5,560 per quintal ex-mill
- 2025–2026 net production
- Estimated at 27.9 million tonnes after 2.4 million tonnes was diverted to ethanol
- Estimated consumption
- About 28 million tonnes
- Projected closing stocks
- Around 3.5–3.9 million tonnes after accounting for exports
- Normative stock level
- 6 million tonnes, equivalent to about three months of consumption
Quotes
Senior industry executive
Industry executive commenting on sugar supply issues
“Ideally, India should have normative closing sugar stocks of 6 mt, which is three months' consumption, but the current situation shows that it could have lower than required stock levels at the start of the 2026‑27 season from October 1, 2026.”
rediff.com
“This clearly shows that someone somewhere was misleading the system into believing that the sugar fundamentals in the country were strong, while in reality production was not making up for consumption.”
rediff.com
Sources
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