As sugar price surges, government toughens import rules to curb hoarding

Under the revised conditions, imported raw sugar must be converted into refined sugar within two months and the refined sugar must also be sold within the same period, the government said.The government has already allowed imports of 10 lakh tonnes of sugar by October 31 as part of measures to improve domestic availability and check prices. (File photo)Amid a surge in sugar prices, the government on Monday tightened raw sugar import rules to prevent hoarding, requiring imported raw sugar to be refined and sold in the domestic market within two months.The notification, issued by the Commerce and Industry Ministry, is aimed at ensuring that imported sugar reaches consumers quickly and does not get stockpiled as raw or refined sugar.The earlier rules required imported raw sugar to be processed within a reasonable period and sufficiently in advance to enable its sale in the domestic market by October 31. The revised conditions set a specific two-month window for processing and sale.Sugar prices have risen in India despite strong sugarcane production, with crop damage caused by pests and excess rain, festive demand and speculative buying contributing to the surge. Earlier, the government allowed imports of 10 lakh tonnes of sugar by October 31 and imposed stock-holding limits on traders and bulk consumers such as soft-drink and ice-cream makers. States have been asked to take action against hoarding and black marketing.On Monday, the average all-India retail price of sugar stood at Rs 63.05 per kg, up 29 per cent from Rs 48.73 per kg a month earlier, according to government data. The maximum retail price was Rs 75 per kg, while the model price stood at Rs 65 per kg. Food Secretary Sanjeev Chopra said ex-mill sugar prices had jumped to Rs 62 per kg from Rs 47-48 per kg in just seven to 10 days, calling the increase "unjustified".NO SUGAR SHORTAGE, SAYS INDUSTRYThe Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said there was no shortage of sugar in the country and retail prices were expected to decline following the government's measures."India does not have a sugar shortage. Our production and stock position remain fundamentally comfortable," ISMA president Niraj Shirgaokar said on Monday.India's net sugar production, after diversion to ethanol, is estimated at around 279 lakh tonnes in the 2025-26 marketing year, while opening stocks stood at 50 lakh tonnes. Domestic demand is estimated at 280-285 lakh tonnes.Food Secretary Chopra said sugar production for 2025-26 is now estimated at 306 lakh tonnes, down from the earlier estimate of 343 lakh tonnes, mainly due to pest attacks on sugarcane crops and waterlogging caused by excess rainfall.ETHANOL POLICYOpposition parties have blamed the Centre's ethanol-blending policy for the rise in sugar prices, arguing that diversion of sugar for ethanol has reduced supplies.The government has rejected the claim. Chopra said it was "completely baseless" to attribute the recent increase solely to ethanol diversion, arguing that the shift towards ethanol had improved the financial health of the sugar sector and helped ensure timely payments to farmers."Some of the stakeholders are trying to create the impression that the sugar prices have gone up only because of ethanol diversion, which is completely baseless," Chopra said.He added that the diversification to ethanol has improved the financial health of the sugar sector and also helped in timely payment to farmers.The latest import rule change is part of the government's efforts to improve sugar availability and bring down prices ahead of the festive season.- Ends(with inputs from PTI)Published By: Devika BhattacharyaPublished On: Aug 25, 2026 08:30 IST