Indian sugar refiners set to release 2.5 lakh tonnes of white sugar into domestic market
Indian sugar refiners will release around 2.5 lakh tonnes of white sugar domestically under the Advance Licensing Scheme to strengthen supplies and curb festive price pressures. The government also permitted duty-free imports of 10 lakh tonnes amid lower production estimates.
Indian sugar refiners are set to make around 2.5 lakh tonnes of white sugar available in the domestic market as the government intensifies efforts to improve supplies and prevent prices from rising ahead of the festival season.
Shree Renuka Sugars Managing Director and CEO Susheel Kumar said refiners have offered approximately 2.5 lakh tonnes of white sugar, produced from imported raw sugar under the Advance Licensing Scheme (ALS), for sale within India.
Kumar made the remarks on the sidelines of an event organised by the Indian Sugar and Bio-energy Manufacturers Association (ISMA).
India currently has two standalone sugar refineries, including Shree Renuka Sugars. These refineries import raw sugar under the ALS, process it into white sugar and generally export the refined product.
However, the government last month asked refiners to divert the white sugar processed under the scheme to the domestic market to increase availability.
According to Kumar, the government’s intervention has already contributed to a correction in prices. Ex-mill sugar prices are currently ruling at around Rs 43-44 per kg, compared with an estimated landing cost of about Rs 50 per kg for imported sugar.
The government has also opened the door for duty-free imports of 10 lakh tonnes of sugar as part of its broader efforts to strengthen domestic availability.
Other steps include stricter stockholding limits for dealers and bulk consumers. Sugar exports had also been prohibited earlier as the government sought to prioritise domestic supplies.
The government has maintained that the country has sufficient sugar stocks and has alleged that some mills contributed to the rise in prices.
Meanwhile, the government’s sugar production estimate for the 2025-26 marketing year has been revised down to 306 lakh tonnes from an earlier projection of 343 lakh tonnes. India’s annual sugar consumption is estimated at around 280-285 lakh tonnes.
With refiners preparing to release additional sugar into the domestic market and duty-free imports permitted, the measures are expected to improve supply availability and help contain prices in the coming months.
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Source : ChiniMandi
