India authorizes first raw sugar imports in ten years to curb price surge

For the first time in ten years, India’s government gave the green light to bring in 10 lakh tonnes of raw sugar, a step taken to counter a forecasted 20% decline in opening inventories and a recent surge in retail prices. The decision coincides with a new food-ministry directive that caps bulk buyers—such as confectioners and soft-drink makers—who use more than 10 tonnes a month to hold no more than 15 days of stock, effective from September through November.

Production this season has dropped to 296 lakh tonnes, the lowest since the 2019-20 cycle, while annual consumption is estimated at about 280 lakh tonnes. Industry estimates for the next crop year suggest output could rise to 324 lakh tonnes, and mill stocks are said to be sufficient to meet demand until late in the year. The import permission is presented as a precautionary measure for the peak festival months, with the Indian Sugar & Bio-Energy Manufacturers Association stressing that it signals a stance against speculative price hikes rather than a response to a supply gap. Retail sugar prices have already risen 13% year-on-year, prompting weekly stock declarations and holding limits to curb hoarding.