For 1st time in a decade, India to import 10 lakh tonnes of sugar

New Delhi - The Indian government has permitted the import of 10 lakh tonnes of raw sugar for the first time in a decade, as the country faces a potential 20% decline in opening stock of the sweetener. This decision came following the food ministry's directive to limit bulk consumers, such as confectioners and food processing industries, to hold sugar inventories for no more than 15 days. The order will be in effect from September to November.

The government's action follows a sharp decline in sugar production, which is projected at 296 lakh tonnes, the lowest since the 2019-20 season. Industry experts estimate production for the next crop year at 324 lakh tonnes. Sugar industry representatives argue that there is no shortage in the country, as mills' stocks are sufficient to meet domestic demand until November and December, when new sugar reaches the market.

India consumes approximately 280 lakh tonnes of sugar annually. The government's two moves aim to address rising retail prices, which increased by 13% over the past year. The average sugar retail price in India is now Rs 52.3 per kg, up from Rs 46.3 per kg a year ago. In July, prices rose by over 9%. To curb hoarding and speculative trading, the government has imposed stock holding limits on sugar dealers between August and November, making it mandatory for dealers to declare and update their stocks weekly.

The Indian Sugar & Bio-Energy Manufacturers Association welcomed the government's decision to import sugar, stating it sends a clear message that price increases will not be tolerated. They view the import as a precautionary measure to provide comfort during peak festival months and not a response to any supply gap.