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[BUSINESS] · India · 51 sources

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India implements sugar import measures to stabilize prices

India is implementing several measures to stabilize rising sugar prices ahead of the festive season. The government has authorized the duty-free import of 1 million metric tons of raw sugar under a Tariff Rate Quota (TRQ) to bolster domestic supply. Recent regulatory changes by the Directorate General of Foreign Trade now allow importers up to two months from the date of filing a bill of entry to process and sell imported raw sugar in the domestic market.

While retail prices have surged significantly due to seasonal demand and weather-related production issues like red rot disease and El Niño, the Indian Sugar Mills Association (ISMA) maintains that there is no actual shortage. ISMA President Niraj Shirgaonkar stated that existing stocks are sufficient to meet demand and that price hikes are largely driven by market sentiment and speculative hoarding rather than a supply deficit.

To further curb artificial shortages, the government has introduced stock limits for large commercial users and is encouraging sugar mills to begin the new crushing season earlier in October. Despite these interventions, market volatility persists, with some industry experts noting that falling domestic prices may reduce the incentive for refiners to utilize the full import quota.

Entities

Akhilesh Yadav · Ashok Gulati · Bajaj Hindusthan Sugar · Brazil · Directorate General of Foreign Trade · Dwarikesh Sugar Industries · Government of India · India · Indian Government · Indian Sugar Mills Association · Ministry of Consumer Affairs, Food and Public Distribution · Niraj Shirgaonkar

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