India Considers Sugar Import Duty Cuts Amid Price Spikes

The Government of India is considering a reduction in sugar import duties to combat record-high domestic prices. Ex-mill sugar prices in Maharashtra recently reached an all-time high of approximately ₹46 per kg, driven by a combination of domestic supply pressures and global market volatility.

Domestic production is threatened by monsoon rains that are 13% below normal, which has delayed crop sowing. Simultaneously, the El Niño weather phenomenon has strained global supplies, pushing New York sugar futures to a one-year high. To mitigate potential shortages before the peak consumption season running from August to January, sugar factories in Maharashtra and Uttar Pradesh plan to begin crushing 10 to 15 days earlier than the typical November start.

In addition to the potential duty cuts, the government has implemented stockpile limits on traders to prevent hoarding and manage inflation risks.