Centre releases 1.4 mn tonnes sugar quota to cool prices ahead of Diwali
The Centre has released 1.4 million tonnes of sugar for the second half of October as mill prices surge; it has also cut stock limits for dealers to curb price rises ahead of Diwali
Sugar prices have surged over 10% in just six days, driven by limited supplies as the country gears up for the Diwali festival. Prices in Uttar Pradesh and Maharashtra have climbed significantly, with ex-mill rates reaching ₹5,200 and ₹5,100 per quintal, respectively. Agriculture expert GK Sood attributes the shortage to restrictions on stocks and trade, and the fact that additional sugar intended for domestic use has largely been absorbed by September.
The government has taken steps to increase availability and curb hoarding, including permitting duty-free imports of 1 million tonnes of raw sugar and imposing stock limits. However, early crushing of sugarcane in Maharashtra and Karnataka is facing a shortage of harvest-ready cane, and farmers are hesitant to harvest early without compensation.
This delay threatens to keep the market reliant on existing stocks and imports until the new season begins, coinciding with the peak festive demand for sugar.
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- Sugar prices rise over 10% in 6 days amid tight supplies ahead of Diwali hindustantimes.com
