Government tightens sugar import rules amid price surge, mandates two-month window for sale
PTC News Desk: Amid rising sugar prices, the government on Monday changed the rules for importing raw sugar to prevent hoarding. Under the new rules, imported raw sugar must be processed and sold in India within two months.
The Commerce and Industry Ministry said the move is aimed at making sure imported sugar reaches consumers quickly instead of being stored as raw or refined sugar. Earlier, importers were required to process the sugar within a reasonable time so it could be sold in the domestic market by October 31. The new rules now set a clear two-month deadline.
Sugar prices have increased despite strong sugarcane production. Pest attacks, heavy rainfall, rising festive demand and speculative buying have contributed to the price rise. The government had earlier allowed the import of 10 lakh tonnes of sugar by October 31 and placed limits on how much sugar traders and large buyers, including soft-drink and ice-cream companies, could store. States have also been directed to take action against hoarding and black marketing.
In May, the government had banned exports of raw, white and refined sugar until September 30 to control domestic prices amid concerns over supplies.
According to government data, the average retail price of sugar across India was Rs 63.05 per kg on Monday. This was 29% higher than the Rs 48.73 per kg recorded a month earlier. The highest retail price was Rs 75 per kg, while the model price was Rs 65 per kg.
Food Secretary Sanjeev Chopra said ex-mill sugar prices had risen sharply from Rs 47-48 per kg to Rs 62 per kg within just seven to 10 days. He described the increase as "unjustified".
No sugar shortage: Industry
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said the country does not face a sugar shortage and expected retail prices to come down following the government's steps.
ISMA president Niraj Shirgaokar said India's sugar production and available stocks remained comfortable.
For the 2025-26 marketing year, India's net sugar production after diversion for ethanol is estimated at around 279 lakh tonnes. The country also had opening stocks of about 50 lakh tonnes. Domestic sugar demand is estimated to be between 280 and 285 lakh tonnes.
- PTC NEWS
