India Cuts Sugar Prices Through Import and Quota Shifts

Ex-mill sugar prices in India have dropped by approximately 18 to 20 per cent, with retail prices following a similar downward trend. The Government of India initiated these changes to combat hoarding and speculation after the Ministry of Consumer Affairs, Food and Public Distribution found that some mills were engaging in short selling and holding more stock than they had officially declared.

To stabilize the market, the government is replacing monthly quotas with a fortnightly allocation system starting in September. Under these new rules, mills must sell 40 per cent of their allocation during the first week and ensure all sales are dispatched within seven days. These measures follow an August 20 decision to allow the duty-free import of one million tonnes of raw sugar to increase availability before the festival season.

Domestic production is expected to recover as the new sugarcane crushing season begins on October 15. Production forecasts estimate 10 lakh metric tonnes in October and 45 lakh metric tonnes in November.