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Amid the recent rise in sugar prices across the country, industry body Indian Sugar Mills Association has clarified the situation. ISMA on Monday said there is no shortage of sugar in the country and prices are expected to come down in the retail markets in the coming days. In the last one month, sugar has become costlier by more than 20% from ₹56 to ₹60 per kg. After this, the government had approved duty-free import to provide relief.
Prices increased due to speculation and low yield
ISMA President Neeraj Shirgaonkar said that the main reasons for the recent increase in prices are hoarding under speculation and low production due to weather-related problems. He said, “There is no shortage of sugar in India and the supply fundamentals are completely strong. There is sufficient stock in the country to meet the demand of the upcoming festive season.
10 lakh tonne duty-free import approved
The central government had taken a big decision on August 20 after the price of sugar reached ₹ 56 to ₹ 60 per kg in retail and wholesale markets. The government has allowed import of 10 lakh tonnes of raw sugar without any customs duty, so that the prices can be controlled by increasing the supply in the market.
NFCSF said – no need to panic
The National Federation of Cooperative Sugar Factories has also described the domestic supply as adequate. NFCSF President Prakash Naiknavare said the federation has retained its net sugar production estimate for the 2025-26 season at 27.9 million tonnes. Out of this, about 24 lakh tonnes of sugar has been diverted for ethanol production. Every year in India about 3

The first consignment may arrive before October 15
According to NFCSF, some consignments of imported sugar may reach Indian ports before October 15. Prakash Naiknavare said that Thailand itself is struggling with sugar shortage, in such a situation Brazil is the only option. It takes 40 to 45 days for ships to reach India from Brazil, after which it is transported to the mills. This timeline will depend on DGFT approval, letter of credit and port congestion.
Relaxation possible in the deadline of 31st October
On the deadline of October 31 set by the government, Naiknavare said that there can be relaxation in this. Shipments that are already en route are likely to be allowed to arrive even after the scheduled date.
Coastal states will get relief first
Coastal states like Maharashtra, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh will get imported raw sugar first. Sugar will be transported from these ports to the landlocked states of North India through rail or road.
Despite quota, exports decreased
Naiknavare informed that due to unfavorable prices in the international market, India had exported only 8 lakh tonnes of sugar out of the fixed quota of 20 lakh tonnes.
Even if there were no restrictions, exports would not have gone beyond 10 lakh tonnes. The central government has banned sugar exports from May 13 to September 30 to increase domestic availability and keep prices under control.
Knowledge Box: How to make edible sugar from raw sugar?
Refining Process: Raw sugar coming from Brazil cannot be used directly. It will be processed in the country’s refineries and sugar mills and converted into white granulated sugar, after which it will come to the retail market.
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