India weighs duty-free sugar imports and tighter trader limits to curb soaring prices

Facing a near-20% jump in wholesale sugar prices, the Indian government is considering multiple policy tools to increase domestic availability. Options on the table include allowing limited duty-free imports, cutting import duties, tightening stockholding limits for bulk traders, and adjusting monthly sales allocations for mills. Prices in Kolhapur, a key trading hub, have hit Rs 5,350 per 100 kg, a level described as unprecedented.

While a government source claims overall supplies are adequate until the next season's crop arrives, traders report persistent market tightness. Ashok Jain, president of the Bombay Sugar Merchants Association, says imports are essential to temper prices during the high-demand festival period.