For 1st time in a decade, India to import 10 lakh tonnes of sugar
NEW DELHI: Govt Thursday allowed the import of 10 lakh tonnes of raw sugar, the first such move in a decade, as it stared at a possible decline of at least 20% in the opening stock of the sweetener.The move came soon after the food ministry ordered that no bulk consumer such as confectioners, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers using more than 10 tonnes of sugar a month can hold inventories for more than 15 days.
This means if an entity uses 12 tonnes a month, at any given point, it can hold a stock of six tonnes. The order will be applicable between Sept and Nov.The low opening stock - projected at 35-40 lakh tonnes, against 50 lakh tonnes at the start of Oct 2025 - was on account of a sharp fall in production to 296 lakh tonnes, the lowest since the 2019-20 sugar season that runs from Oct to Sept.
During the next crop year, the industry has estimated production at 324 lakh tonnes.The sugar industry has maintained that there is no shortage in the country as stocks with mills are adequate to meet the domestic demand till Nov-Dec, when fresh sweetener reaches the market.Officials said India's annual sugar consumption is around 280 lakh tonnes.
According to the third advance estimate of sugar production for the 2025-26 season in Feb, the industry projected net production at 290 lakh tonnes, excluding 31 lakh tonnes diverted for ethanol. The final sugar production figure for the current season is likely to be released next month.Govt's twin moves come amid rising retail prices.
The average sugar retail price was Rs 52.3 a kg Tuesday, 13% higher than a year ago, according to data available with the consumer affairs department. In July, retail prices rose over 9%. To check hoarding and speculative trading, govt imposed stock holding limits on sugar dealers from Aug to Nov and has made it mandatory for dealers to declare their stocks and update them weekly.Indian Sugar & Bio-Energy Manufacturers Association said govt's move to import sugar sends a clear signal to the market that speculative and unwarranted price increases will not be allowed to persist.
It said the import permission was a precautionary measure that added further comfort during the peak festival months, and not a response to any supply gap.Get the latest Business News and Live updates. Download the TOI app.