Govt allows duty-free imports of 1 million tons of raw sugar, signals price relief

New Delhi: The government clarified on Friday that it has no evidence to support claims that diverting sugarcane for ethanol production has caused a recent surge in sugar prices. In a press release, the Ministry of Consumer Affairs, Food and Public Distribution stated that the amount of sugarcane used to make ethanol has decreased over the past few years, representing only about 9% of ethanol production in India, compared to nearly 12% in 2022-23.

The majority of ethanol now comes from maize, not sugarcane. The ministry emphasized that the recent increase in sugar prices is due to a combination of factors, including reduced domestic production, higher demand, hoarding, and limited global supplies. Despite the lower-than-expected sugarcane harvest, sufficient sugar stocks are available to meet domestic demand until the new crushing season in October.

The government has also imposed a stock limit of 400 tonnes on sugar dealers and is taking measures to curb hoarding and increase sugar supplies.