• Source:JND
HighLights
  1. India considers duty-free sugar imports to control prices
  2. Tighter stockholding limits for traders are also under review.
  3. Sugar prices surged due to low stocks and previous exports.

Amid a surge in Sugar prices in the retail market, India is considering allowing limited duty-free sugar imports. Additionally, tighter stockholding limits guidelines for bulk traders could be announced as well to boost domestic supplies ahead of the festive season, according to media reports.

Business Standard reported that the government may import one million tonnes (mt) of raw sugar at zero duty after nearly a decade.  Last time, India allowed the import of raw sugar during the 2016-17 season, several media reports claimed, citing industry sources. 

What Fuels Sugar Prices In Domestic Market 

  1. The spike in sugar prices has largely been driven by low stocks at sugar mills. 

  2. Several reports claimed that the decision to allow sugar exports of 1.5-2 mt amid inaccurate production estimates caused the situation.

  3. The Centre allowed export of 1.5 mt sugar in November 2025. The limit was later increased to 2 mt.

  4. Chinimandi reported, citing an executive, that an additional 0.5 mt export quota allowed in late February 2026 hit the domestic stock hard.

Sugar Price Surges 20% In June

In Kolhapur, one of India's major sugar trading hubs in Maharashtra, sugar prices rose nearly 20 per cent in August to a record Rs 5,400-Rs 5,560 per quintal, or 100 kg.

According to data from the Department of Consumer Affairs, the average retail price across India on Tuesday (August 18) was Rs 52.3 per kg.

Meanwhile, in several cities, retail sugar prices reached nearly Rs 65 per kg (Punjab). In Mumbai and Bhopal, they were trending towards Rs 58-Rs 63 per kg.

The sharp increase occurred despite government estimates that domestic supply would be sufficient to meet demand until the next season's sugar arrived.

Also Read: SEBI’s First Strike: Two Entities Barred In New 'Call Auction' Crackdown; Key Details  

Govt Steps In To Damage Control 

The government has taken steps to normalise the situation. According to reports, lowering stockholding limits, allowing limited sugar imports, and reducing import duties are the measures under consideration. 

In India, sugar demand typically peaks between August and November, coinciding with major festivals such as Ganesh Chaturthi, Dussehra, and Diwali.


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