The Centre has tightened rules for imported sugar as prices across India have surged sharply in recent weeks. According to the new notification issued by the Ministry of Commerce and Industry on Monday, sugar imported from overseas must now be processed or refined and released into the open market within two months.
The move is aimed at preventing hoarding and black marketing while ensuring adequate supplies during the upcoming festive season. Earlier, the government had allowed imported sugar to be processed within a specified period and required it to be sold by October 31, without setting a separate deadline for processing.
Sugar prices have reportedly risen by nearly 40 per cent in just 15 days. Poor rainfall affecting sugarcane cultivation and demand exceeding supply have been cited among the reasons behind the sharp increase.
The government had initially expected higher sugar production during the 2025-26 season and permitted exports of 15 lakh tonnes in November, followed by another five lakh tonnes in February. However, production estimates later weakened, prompting tighter controls on exports and domestic sales.
The price surge has also intensified debate over ethanol production. Industry representatives claim around 32 lakh metric tonnes of sugar have been diverted towards ethanol this year. The government, however, maintains that ethanol production is not responsible for rising sugar prices and says sugar consumption for ethanol has declined.
India has now permitted duty-free imports of up to 10 lakh tonnes of sugar until October 31 to improve domestic availability.
