Centre likely to impose weekly sugar quota and dispatch mechanism to control sugar prices: Sources
India may introduce weekly sugar release quotas, trader stock limits, and allow 1 million tonnes of duty-free sugar imports to curb rising prices. Ex-mill sugar prices in Maharashtra have jumped 17% since June, prompting the government to review domestic supplies and market intervention measures.
Kolhapur: The Centre is likely to impose weekly sugar quota and dispatch mechanism to control sugar prices to keep check on rising sugar prices, according to industry sources.
Ex-mill sugar prices in Maharashtra, the country’s largest sugar-producing state, have increased from Rs 3,800 per quintals from June to Rs 4,450 per quintals to July 16, a rise of nearly 17%, according to traders.
Along with this the Centre may consider importing around 1 million tonnes of sugar at zero percent duty as domestic prices continue to rise sharply amid tightening supplies, with the government also evaluating stricter market intervention measures, including a weekly and fortnightly sugar release and dispatch mechanism and stock limits on traders, industry sources said.
The price increase comes even though India’s sugar production for the 2025-26 sugar season is estimated at around 28 million metric tonnes (MMT), up from 26.2 MMT in the previous season. Industry sources attributed the firm prices to tightening domestic availability and robust demand.
The government had approved the export of 1.5 million tonnes of sugar for the 2025-26 sugar season, but only 750,000 tonnes have been exported so far. With domestic demand strengthening and sugar prices rising rapidly, officials are now reviewing the country’s sugar balance and considering imports to ensure adequate supplies in the local market, sources said.
According to industry sources, the Centre is considering allowing the import of 1 million tonnes of sugar on a first-come, first-served basis.
In addition to imports, the government is examining the introduction of a weekly and fortnightly sugar release and dispatch mechanism, replacing the existing monthly release system to improve the flow of sugar into the domestic market.
“The government is also considering imposing stock holding limits on traders along with allowing sugar imports,” an industry source said.
If approved, the measures would represent a significant shift in the government’s sugar policy as it seeks to curb rising prices and ensure uninterrupted domestic availability.
India has previously resorted to sugar imports during periods of tight supply. The country imported 4.1 million tonnes of sugar in 2009-10, 1.5 million tonnes in 2012-13, and 200,000 tonnes in 2017-18.
During the 2009 supply shortage, the Centre permitted imports of white, refined and raw sugar between April 17 and August 1, 2009, and also introduced a weekly and fortnightly sugar release mechanism by splitting the existing monthly release orders to ensure a steady flow of sugar into the domestic market.
Industry sources said the government is closely monitoring market conditions and could take a decision on imports and additional market controls if prices continue to remain firm.
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Source : ChiniMandi
