India steps up imports and limits to tame soaring sugar prices before Deepavali

India, the world’s largest sugar consumer, is confronting a price surge that has pushed the average retail rate to roughly 60 rupees per kilogram, about a quarter higher than in late July. The government has directed sugar mills to ensure adequate supply, limited dealer holdings from 400 to 200 tonnes, and permitted duty-free imports of up to one million tonnes of raw sugar through October, the first such move in nearly a decade.

While inventory estimates show stocks 25% lower than the previous season, officials report no immediate shortage. Industry voices acknowledge that the steps are stabilising the market, yet warn that festive demand for Deepavali will likely keep prices elevated. Experts also note that longer-term solutions require boosting sugarcane output and developing disease-resistant varieties.