India is considering importing around 1 million tonnes of sugar to ease domestic shortages and contain rising prices, potentially marking its first major sugar imports in nearly a decade. The move comes as India, traditionally a major sugar exporter, faces tighter supplies amid increased ethanol production.
According to Reuters, the government is initially considering duty-free imports, with the primary objective of increasing domestic availability and preventing further price escalation. The timing is particularly significant as the festive season approaches, when demand for sugar typically rises sharply during Durga Puja, Diwali and other celebrations.
Irregular monsoon conditions have affected sugarcane production, while government incentives to expand ethanol manufacturing have intensified competition for sugarcane. Ethanol production requires a substantial share of sugarcane juice, prompting ethanol plants to offer attractive prices to farmers. This has reduced cane availability for sugar mills and contributed to lower sugar production.
Prices have already surged. In Maharashtra’s Kolhapur, one of India’s biggest sugar hubs, wholesale sugar prices reportedly reached ₹5,400 per quintal on Tuesday, the highest level of the current season. Average wholesale prices nationwide stood at around ₹52.30 per kilogram, while retail prices in several cities climbed to ₹58–65 per kilogram.
Although imports may provide some relief, analysts expect the initial impact to be limited. India could potentially import more sugar later if domestic supplies remain tight. The prospect of India entering the global sugar market as a buyer has also pushed up concerns in international markets, given the country’s significant role in global sugar exports.
